TikTok Deal

This week we talk about social networks, propaganda, and Oracle.

We also discuss foreign adversaries, ByteDance, and X.

Recommended Book: Rewiring Democracy by Bruce Schneier and Nathan E. Sanders

Transcript

In 2021, TikTok, a short-form video platform that’s ostensibly also a social network, though which leans heavily toward consuming content over socializing, was ranked the most popular website by internet services company Cloudflare, beating out all the other big tech players, including search engine juggernaut, Google.

It was a neck and neck sort of thing, with Google taking the lead some days that year, but 2021 was definitely TikTok’s time to shine, as it was already popular with young people and was starting to become popular with the general public, of all ages and across a huge swathe of the planet. It even beat Facebook as the most popular social media website that year, despite, again, being mostly about consuming content rather than interacting—that was actually a prime motivator for Meta, which owns Facebook and Instagram, to redirect its own apps in a similar direction, shifting its focus from communication and interaction between users toward the creation of binge-able content, and feeding users more of that content in a feed optimized for time-losing levels of consumption.

2021 was also the first full year that TikTok was coming under scrutiny from the US government. In the preceding year, 2020, then first-term president Donald Trump said he was considering banning the app because it was becoming so popular, with young people in particular, and because it was owned by a Chinese company, ByteDance it represented a potential national security threat.

So the idea was that because Chinese companies are forced, by their very nature, to do what the Chinese government tells them—that’s just how things work over there—and to do so on the down-low if that’s what the governments demands, and to lie about having to do what the government tells them to do, if the government tells them to thus lie, it doesn’t matter that ByteDance’s leadership swore up and down to the world that the company will never use its popularity, and the data it soaks up from all its users as a result of that popularity, to help the Chinese government, the Chinese military, or Chinese intelligence services.

It of course will have to do that, and if it doesn’t, its leaders could be black-bagged and disappeared in the night—because again, that’s just how things work over there. So the Trump administration decided to make TikTok a sort of bogeyman, representing Chinese companies in general, and to some degree the presence of China in the US and throughout the Western world, and said, nope, we’re not gonna let this thing continue to operate over here.

It’s worth remembering, too, that by 2021 the world was enmeshed in the COVID-19 pandemic, which originated in China, and which Trump and his administration were ardently attempting to tie to the Chinese government—calling Covid the Chinese Flu, and even worse things, as part of that effort.

So this move against TikTok and its parent company, while based on genuine concerns about the ownership of the company and how and where the data being collected by said company is handled, it should also be seen as a political maneuver, allowing Trump, during the 2020 election run-up, to look like he was taking a big stand against a big foreign threat, China.

What I’d like to talk about today is a deal that was proposed way back then by the Trump administration, as a potential way out for TikTok and ByteDance, allowing it to continue operating in the US despite threats to shut it down, now that said deal, or a version of it, seems to have finally come to fruition—and what we know about the shape of the resulting new, US-based version of TikTok.

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On January 18, 2025, TikTok stopped worked in the US. It voluntarily suspended all services in the country in the lead-up to the implementation of the Protecting Americans from Foreign Adversary Controlled Applications Act, which was passed by the US congress and signed into law by then-president Joe Biden in April of 2024. This law gave social networking services controlled by ‘foreign adversaries’ 270 days, with the possibility of a 90-day extension, to divest themselves so that they’re no longer considered foreign adversary-owned.

This law was almost exclusively aimed at TikTok, and the idea was that TikTok, in the US, would no longer be able to legally function following that deadline if it was still owned by China, which for the purposes of this law has been labeled a foreign adversary.

ByteDance could keep TikTok in the US going if it sold a majority, controlling stake of its US-based assets to non-adversary owners, but otherwise it would have to shut down.

Interestingly, though Trump was the original source of concerns about TikTok and its Chinese ownership during his first administration, when he stepped back into office in January 2025, he signed a new executive order that delayed the enforcement of this Biden-signed law, and then delayed it still-further, three more times after that, saying that he wanted to give American investors the time to negotiate controlling interest of US TikTok, rather than banning it.

Those efforts eventually bore fruit in the shape of a new controlling entity called TikTok USDS Joint Venture LLC, which is made up of a bunch of non-Chinese investment entities, including US software behemoth Oracle, an Emirati investment firm called MGX, a US investment firm called Silver Lake, and a personal investment company owned by Michael Dell, the founder of Dell Technologies. There are other, smaller investors also involved, but the red thread that runs through almost all of them is that they’re big Trump supporters and funders, funneling a lot of money into Trump’s campaigns, and his family businesses.

So six years after the initial legal salvo was fired at TikTok in the US, the local assets are now controlled by non-Chinese investors, though the original Chinese owner, ByteDance, still owns just under 20%, compared to about 15% apiece for Oracle, MGX, and Silver Lake.

The new company’s board is majority-run by those investors, too, which means it’s majority-run by ardent Trump supporters. We don’t yet know what effect this will have on content within the app, but under full Chinese ownership, topics related to democracy, Tianamen Square, and the LGBTQ community, among others, were significantly downgraded in the algorithm, ensuring they were seldom shown to anyone, which in turn disincentivized content that those owners didn’t like while incentivizing content that was pro-China, and pro-Chinese government priorities.

It’s considered to be likely, by analysts who watch these sorts of maneuverings, that the same will be true of this new entity, but for and against subject matter that the Trump administration is for and against. Which raises the possibility that the new US TikTok, while superficially the same as the previous US TikTok, will slowly go the way X, formerly Twitter, has gone under Elon Musk, which was dramatically pushed in a new direction under its own owner, focusing on his political and ideological priorities and punishing users who spoke against those priorities.

TikTok could become more or less an extension of the Trump-verse, in other words, and could thus become something more akin to Trump’s own network, Truth Social, or other right-leaning and far-right social networks, like conservative YouTube-clone, Rumble, rather than something less ideological, or maybe I should say less overtly politically ideological, like Meta’s Facebook, Threads, and Instagram.

Users have already noticed some changes to US TikTok after the change in ownership, though, including what sorts of data are collected.

TikTok’s new privacy policy, which all users have to agree to before using the app, now that the platform has changed hands, says that TikTok will be using precise location tracking, keeping tabs on exactly where users are located via their device’s GPS. That’s compared to the app’s previous approximate location-tracking effort, which used SIM card and IP address data to understand general proximity—it still uses that data, too, but now, rather than knowing what neighborhood you’re probably in, it may also know what room in your house you’re scrolling from.

The new US TikTok also tracks users’ interactions with AI tools, including their prompts, outputs, and metadata attached to said interactions, which includes details about where users are when they’re using such tools, and what time they used them.

They also collect gobs of marketing data from outside sources, and based on the users’ activity within the app. So things you buy, websites and other apps you visit and use, and conversations you have will all be sucked up and agglomerated into a profile that’s then used to show you targeted advertising. This isn’t unique to US TikTok, but the company does seem to intend to make use of more such data, and to combine it with that other stuff it’s now collecting, to increase the price it can charge for ads, because they’ll be a lot more specifically targeted than before.

Some users are beginning to comb through the new user agreement with a fine-toothed comb, noticing, in addition to those aforementioned major changes, that the company also reserves the right to collect information about your physical and mental health, to use identifying information in the videos and images you might share, and information gleaned from people and their identifying characteristics in images and videos, and to collect biometric data, which usually means eyes and faces and walking gate and things like that, to differentiate and track people across such content. They can keep tabs on your sex life, sexual orientation and gender, your drug usage, your ethnic and racial origins, your citizenship and immigration status, your financial situation and information—all sorts of stuff is collected, and they say in the privacy policy and user agreement that they intend to do gather and store and cross-reference this kind of information whenever possible.

Again, much of this isn’t novel, as social platforms are gobbling up all sorts of stuff about their users all the time, mostly to refine their ad placements because that allows them to charge advertisers more for better-targeted placements, over time.

That said, because of the nature of the group that now owns US TikTok and which is making executive decisions about it, including, potentially, how this data is shared, including with the US government and its many agencies, there’s a chance we might see an exodus of sorts from the still younger-than-average user base of this network, because there is a nonzero chance it could become a tool in the Trump administration’s utility belt for tracking down people they don’t like and spreading messages that are favorable to them and their ideological aims; so basically what was happening under the previous ownership, but for the current US administration’s priorities, rather than those of the Chinese government.

Show Notes

https://www.nbcnews.com/tech/tech-news/tiktok-surpasses-google-popular-website-year-new-data-suggests-rcna9648

https://www.nytimes.com/2026/01/22/technology/tiktok-deal-oracle-bytedance-china-us.html

https://www.wired.com/story/tiktok-new-privacy-policy/

https://archive.is/20260123005655/https://www.bloomberg.com/news/articles/2026-01-23/tiktok-seals-deal-to-create-us-venture-with-oracle-silver-lake

https://www.axios.com/2026/01/23/tiktok-deal-trump-app-ban

https://www.theverge.com/tech/866868/tiktok-usds-new-owners-algorithm-explained

https://www.politico.com/news/2026/01/22/5-things-to-know-about-the-tiktok-deal-00743316

https://www.nytimes.com/2026/01/23/business/media/tiktok-us-terms-conditions.html

https://en.wikipedia.org/wiki/TikTok

https://en.wikipedia.org/wiki/Donald_Trump%E2%80%93TikTok_controversy

https://en.wikipedia.org/wiki/Efforts_to_ban_TikTok_in_the_United_States

https://en.wikipedia.org/wiki/Protecting_Americans_from_Foreign_Adversary_Controlled_Applications_Act

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