What Just Happened With TikTok?
In April 2024, President Biden signed legislation forcing TikTok’s China-based parent company, ByteDance Ltd., to divest its U.S. operations within 270 days or face a nationwide ban. That deadline arrived in January 2025; TikTok briefly went dark in the U.S. for about 12 hours before service was restored following an executive order delay.
Over the last few weeks, momentum has built toward a deal. The U.S. and China reached a framework agreement for a U.S. spin-off of TikTok’s American business, under which a consortium of mostly U.S. investors— including Oracle Corporation, Silver Lake Partners and Andreessen Horowitz—would control approximately 80% of the newly-formed entity. ByteDance would retain a minority stake but would license the algorithm and surrender operational control. Meanwhile, President Trump signed an executive order postponing enforcement of the 2024 law for roughly 120 days to allow the deal to be finalized.
Despite the headline deal taking shape, several critical questions remain unresolved: Chinese government approval, the full mapping and transfer (or retraining) of TikTok’s recommendation algorithm, and oversight of U.S. user-data storage and content moderation. Some U.S. lawmakers continue to argue that any lingering Chinese influence (via ByteDance’s retained stake or algorithm license) undermines the national security rationale for the law.
This is obviously a messy saga, and the final outcome is still unclear. But we see zero reason to think that the potential TikTok sale might suddenly make the platform more relevant for public affairs. Here's why: