The deal is signed: 200 million Americans will continue to enjoy TikTok, but it could get "slower"

The "secret sauce" algorithm was what prolonged the deal for years.

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TikTok logo on a phone.
Back in 2024, Biden signed the bill that forces TikTok to be sold or get banned – and after multiple delays and hiccups, the deal is finally signed.

It won't be banned (for now)



Nobody knows what tomorrow holds, but at least for now, some 200 million Americans will continue to enjoy TikTok (if "enjoy" is the correct word in the first place).

The main issue that allegedly prolonged the deal was the app's "secret sauce" algorithm, which decides what content users see, BBC states. This algorithm has now been licensed to the app's American owners and will only use US data to learn. Experts say this will bring changes, but it's not yet clear how it will affect the 200 million Americans who use the app.

The consequences of the deal will soon manifest themselves, and some say US TikTok might even get "slower", since it'll work differently from the global version. Users could also get recommendations that are not as on point as with the original Chinese-made algorithm.

What's new?


TikTok's US operations are now run by a new company called TikTok USDS Joint Venture LLC, which will protect American user data and control the app with cybersecurity measures. The joint venture is independent and managed by a seven-member board, mostly made up of Americans. Adam Presser, formerly of WarnerMedia, is the CEO.

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Three investors each own 15%: Oracle (which will secure US user data and manage the app's recommendation algorithm), Silver Lake and MGX. ByteDance keeps a 19.9% stake, while the remaining 35.1% is owned by companies including Michael Dell's family office and Vastmere Strategic Investments.

TikTok's global CEO, Shou Zi Chew, and executives from the main investors also sit on the board. The deal has drawn attention from former President Trump, who said he was happy to help "save TikTok".



TikTok is sticking around for now, much to everyone's relief. Whether it'll feel the same with a new US flavor… that's for you to discover.

In what way do you expect TikTok to change?

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