New York
Legal and Compliance
By : Syed Owais Date:January 26, 2025
In a dramatic twist to the ongoing saga of TikTok in the U.S., former President Donald Trump announced he would delay a previously proposed ban on the wildly popular social media app. The announcement came with a surprising suggestion: the creation of a joint venture with significant U.S. ownership to address national security concerns.
TikTok, known for its viral videos and immense popularity among Gen Z, has long been under scrutiny by U.S. officials who claim the platform could be used by its Chinese parent company, ByteDance, to collect data on American users. While no conclusive evidence has surfaced, the app’s ties to China have sparked heated debates over data privacy and national security.
For years, Trump has been vocal about his concerns regarding TikTok. But this latest development signals a possible shift in tone—a move away from outright bans and toward potential collaboration.
Speaking at an event on January 19, 2025, Trump suggested that TikTok’s future in the U.S. could involve a joint venture where American investors hold a controlling stake. This structure, he argued, could alleviate security concerns while preserving TikTok’s availability for millions of U.S. users.
“If we can ensure U.S. control and oversight, TikTok doesn’t need to be banned—it can be secured,” Trump said.
The idea isn’t entirely new. In 2020, there were talks of a deal involving Oracle and Walmart acquiring stakes in TikTok’s U.S. operations. However, that deal fell through as legal battles and shifting political dynamics delayed its execution. Trump’s latest comments suggest a renewed interest in finding a compromise that safeguards both national security and user access.
The announcement has reignited debates across the tech and political spectrum.
Some view the joint venture proposal as a pragmatic solution. “This could be a win-win,” said [Tech Expert Name], an analyst at [Company]. “TikTok continues operating in the U.S., but with a structure that addresses security concerns.”
Others, however, remain skeptical. Critics argue that even partial U.S. ownership might not fully eliminate potential risks, especially if ByteDance retains a role in the new venture.
TikTok itself responded cautiously, welcoming the idea of collaboration but emphasizing its commitment to transparency. “We are open to discussions that ensure the safety and privacy of our users while preserving their ability to enjoy our platform,” a TikTok spokesperson said.
The stakes couldn’t be higher. TikTok boasts over 150 million users in the U.S., making it one of the country’s most popular apps. For influencers, small businesses, and advertisers, TikTok has become a vital tool for engagement and revenue generation.
A ban would not only disrupt millions of users but also signal a significant escalation in tech-related tensions between the U.S. and China. Conversely, a joint venture could set a precedent for how governments and global tech companies address similar conflicts in the future.
Trump’s proposal is far from a done deal. It would require negotiations between ByteDance, potential U.S. stakeholders, and regulators. Additionally, with the current administration taking a more measured approach to tech regulation, it’s unclear how much traction Trump’s idea will gain.
Still, the former president’s comments highlight a crucial shift in the conversation—from a binary choice between a ban or no action to a potential middle ground.
TikTok’s journey in the U.S. has been a rollercoaster of scrutiny, negotiations, and public debate. Whether the platform’s future involves a ban, a joint venture, or something entirely different, the stakes go far beyond one app.
This is a defining moment for how governments balance security concerns with the realities of globalized tech—and for TikTok, it’s yet another chapter in a story that continues to captivate the world.
Founder & Fractional CBO - Who loves to deliver value over hype. Aiming to build a no-BS community for founders (by founder), investors, venture capitalists, accelerators and journalists.
- Gain full access to our premium content
- Never miss a story with active notifications
- Browse free from up to 5 devices at once