👀 The standoff between TikTok and US authorities is moving toward its final act. US President Donald Trump unexpectedly announced that a solution has been found that will allow the Chinese app to continue operating in the country. Moreover, the deal envisions the creation of a new company worth up to $50 billion, which could reshape not only the future of TikTok but the entire social media industry, Reuters reports.

TikTok Under Threat: How It All Started

Debates around TikTok in the US have lasted for almost a year. The main issue: Chinese company ByteDance’s control over American user data. Under President Joe Biden, Congress passed a law requiring ByteDance to sell its US business segment. The concerns were serious — Beijing’s potential access to teenagers’ data and the risk of using the app’s algorithms as a tool of political influence.

The Trump administration postponed the enforcement of the law three times. The reasons are clear: TikTok has more than 172 million users in the US, and any abrupt decision could have triggered a social explosion. Trump himself admitted that TikTok helped him win last year’s elections — his account there gathered over 15 million followers and became one of the main channels of direct communication with young people.

The New Deal: $50 Billion and the Birth of a Corporation

According to Trump, an agreement has been reached between the US and China, paving the way for a landmark deal. TikTok’s US assets will come under American investor control, avoiding the threat of a nationwide ban.

• Deal size: up to $50 billion.
• New structure: creation of a US-based company built on TikTok, preserving services for millions of users.
• ByteDance: retains 19.9% ownership but loses full control.
• Investors: billionaire Jeff Yass (Susquehanna International) and Bill Ford (General Atlantic Partners) are named among future owners.
• Other contenders: David Ellison, who recently acquired Paramount and is eyeing a major deal with Warner Bros. Discovery.

This essentially means a redistribution of ownership and the creation of a new giant capable of competing with Meta and other tech titans.

The Algorithm as the Ultimate Trophy

The main sticking point has been TikTok’s recommendation algorithm — the platform’s very heart and brain. It is the reason for TikTok’s explosive popularity.

According to media reports, China has taken an unprecedented step: allowing US specialists to copy and adapt the algorithm. This compromise was the result of tough negotiations between Washington and Beijing.

Political Context

The deal must be approved by Congress, currently dominated by Republicans. The law requiring TikTok’s sale is still formally in place. However, the political climate is shifting: Trump has delayed the ban several times. He insists the agreement is beneficial to both countries and preserves “tens of billions of dollars in value.”

“We have reached an agreement on TikTok… There are some very large companies that want to buy it,” Trump said. “The kids want this so much that parents are calling me. They don’t want it for themselves, they want it for their children,” he added.

Thus, TikTok has become not just an app but a factor in US domestic politics.

Geopolitics and the Future of Social Media

Trump and Xi Jinping are expected to discuss deal details today. The White House admits implementation may take more than 90 days. This involves not just re-registering the business but also creating a new algorithm, rebuilding infrastructure, and shaping a corporation of global scale.

If successful, TikTok in the US would become the first major social network with a “split” governance structure: ByteDance keeps a minority stake, while American investors gain key control.

This could set a precedent: foreign apps’ access to the US market will now depend not just on business interests but on geopolitical agreements.

What’s next?

• The deal must be concluded within 30–45 days.
• Control of TikTok will pass to American investors.
• The recommendation algorithm will be replaced or adapted to US standards.
• A new company valued at tens of billions of dollars will be created.

Summary

⚡ The TikTok story in the US has turned into a prolonged thriller with elements of politics, business, and technology. But now the climax is near: TikTok could become the first case where the fate of a social network is decided at the level of heads of state. For users, this means keeping their favorite app; for investors, a new asset worth tens of billions; and for the global economy, a signal: the era of digital sovereignty is only beginning.