ByteDance to Spin Out U.S. TikTok; American Users Keep Same App

ByteDance agreed to spin out a U.S. TikTok entity under an arrangement in which non‑Chinese investors will own about 80 percent and ByteDance will keep 19.9 percent. A spokeswoman for the new venture said the app’s 200 million American users will be able to keep their existing TikTok and will not need to download a new version.

The U.S. TikTok will license the algorithm from ByteDance and retrain it on American users' data, according to a statement from TikTok. It is too soon to say whether the change will alter the app’s recommendation algorithm. The new U.S. entity will also have the final say over content moderation and can decide which kinds of videos are allowed.

TikTok currently bans content such as hate speech, harassment and misinformation, but experts cautioned policies could shift; "even small tweaks could at least change the quality of the experience," said Kelley Cotter. Some experts also warned that new owners could influence content more directly.

"By shifting the ownership of this speech platform to American companies who perhaps have a close relationship with the sitting president, it allows more theoretical room, potentially, for misinformation to be disseminated," said Anupam Chander. The article noted, for example, that Elon Musk loosened restrictions on X after buying it.

Key Topics

Business, Tiktok, Bytedance, U.s. Tiktok, Recommendation Algorithm, Content Moderation