TikTok is an American company now, so everyone’s password has been changed to the high note at the end of “and the rockets red glare.” Ownership of TikTok’s US operations has officially changed hands, but your experience on the app likely won’t change much…immediately. A group of American investors closed a $14 billion deal Thursday night to acquire the US version of the short-form video app and avoid a shutdown mandated by the 2024 divest-or-ban law due to national security concerns. Under the deal, TikTok’s original parent, ByteDance, will retain 19.9% of the company while Larry Ellison’s Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment company MGX will split 45% of the company as managing investors. Most of the remaining shares of the new US TikTok entity will be owned by existing ByteDance investors. - The three managing investors will own US user data and be tasked with moderating US content.
- ByteDance will still own its wildly valuable algorithm, but, according to a White House official, it will lease a copy to the owners of the US entity.
What will 200 million Americans’ midafternoon distraction look like now? For starters, you won’t need to download a new app. But you’ve probably already seen new service terms pop up. These have alarmed some users and pushed some to delete the app, because TikTok will now collect your precise location—not just your approximate location—if you agree to the new terms. Just like in the videos, there’s controversy. TikTok bans hate speech and inappropriate content, but with the new owners moderating, its standards could change (see also: Elon Musk buying Twitter). Some critics claim that the concern that necessitated the sale—that the Chinese government could manipulate the algorithm and spread propaganda—could simply shift to worry about the messages favored by the app’s new ownership, who are pretty close with the current US president. Plus…the 2024 law demands that ByteDance have no operational relationship with the US company, leading some observers to question whether the deal fully complies.—MM | 
