Summary
TikTok has reached an agreement to create a separate company in the United States, preventing a potential ban. This new U.S. version of TikTok will be managed by investment firms, many of which are American and connected to President Trump. The deal follows years of U.S. government concerns over TikTok's Chinese ownership.
Key Facts
- TikTok is forming a U.S.-based company to avoid a ban in the United States.
- More than 200 million Americans and 7.5 million businesses use TikTok.
- The U.S. version of TikTok will be owned by various investors, many from the United States.
- President Trump is linked to some of the investment firms involved in the deal.
- TikTok faced pressure to change its ownership due to concerns over its Chinese parent company, ByteDance.
- In 2024, U.S. legislation required TikTok to divest from ByteDance.
- President Trump extended deadlines to delay a ban that was supposed to take effect in January 2025.
- ByteDance and China have denied any government influence over TikTok, but there were concerns about user data security.
