Concerns Persist Over TikTok Deal
Some analysts argue that the agreement, which President Trump supports to “save” TikTok, does not fully address critical national security issues. Even prominent lawmakers seem uncertain about whether the app adheres to Congressional rules that would ban it if controlled by China.
After extensive legal disputes, the Chinese company announced on Thursday its intention to establish a new TikTok U.S. joint venture, claiming that a majority of its board will be American-led.
ByteDance, based in China, will maintain a 19.9% ownership stake, while the algorithm will be licensed to a U.S. entity and adjusted using data from American users.
Michael Sobolik, a noted expert on China and a senior fellow at the Hudson Institute, expressed concern that the arrangement fails to satisfy Congress’s goals for security. He indicated that TikTok will likely “remain under ByteDance’s effective control.”
“This isn’t a proper divestment; it’s more like a facade,” he stated. “The algorithms are still subject to oversight by the Chinese government, and ByteDance retains significant influence in this new setup. Despite what officials may say, all security worries still stand.”
A 2024 federal law mandated that ByteDance must entirely relinquish control of TikTok or face a complete ban in the U.S.
The law specifically prohibited any collaboration regarding content recommendation algorithms or data sharing between ByteDance and its U.S. owners. However, it also leaves room for the president to determine what a “qualified sale” looks like.
Concerns among lawmakers about potential surveillance of TikTok’s 200 million U.S. users prompted calls for the ban. There was a brief outage in TikTok’s functionality after it failed to comply with a law enacted in January 2025 that required a change in ownership.
On his first day in office, Trump signed an executive order to keep TikTok operational while attempting to negotiate new ownership.
As for Congressional leaders, it’s still uncertain if they will raise objections to the new arrangement, as many vital details remain unclear.
Representative John Moolener (R-Mich.), a critic of TikTok, mentioned plans to hold a hearing on this deal “in the coming months.”
“Without more specifics, it’s tough to assess whether this aligns with the law,” said Carrie Filippetti, executive director of the Vandenberg Coalition, a policy think tank. She emphasized the need to protect U.S. security while ensuring that Congress maintains oversight.
Regarding whether the Chinese Communist Party influences the algorithms or if American data is safe, Moolener noted those are essential questions that need addressing as they move forward.
Senator Tom Cotton (R-Ark.) has stated he would oppose any deal that doesn’t involve a complete sale by China, but there’s no comment yet on the finalized agreement.
The structure of the new entity includes ByteDance’s 19.9% stake, which is the largest single ownership in this partnership—just shy of the 20% cap on Chinese ownership set by Congress.
Oracle, along with Emirati investment fund MGX and U.S.-based Silver Lake, will each take a 15% stake, while the remainder will be held by other investors, including billionaire Michael Dell.
TikTok claims Oracle will act as a “trusted security partner” and will oversee the updated algorithms on U.S. servers. However, Congress previously rejected a similar proposal involving Oracle, dubbed “Project Texas,” as inadequate for security needs.
Though the exact financial terms of this new deal aren’t public, reports suggested in September that ByteDance could receive over 50% of TikTok’s U.S. profits, along with a substantial cut from licensing fees for its algorithms.
To put it in perspective, if TikTok U.S. generates $20 billion, ByteDance could pull in around $4 billion, further boosted by its stake in the new company.
Vice President J.D. Vance noted that this new arrangement, under U.S. investors, allows Americans to use TikTok while ensuring their data is safeguarded.
A Vance spokesperson expressed confidence that this development addresses relevant national security concerns, with Vance staying closely involved during negotiations.
Furthermore, a recent poll revealed that about 66% of Trump supporters believe the public deserves transparency regarding the terms of the TikTok agreement, with over 90% expressing ongoing worries about its security risks.
