Trump's 'TikTok America' plan could solve TikTok's woes in the US

The post Trump's 'TikTok America' plan could solve TikTok's woes in the US appeared first on Android Headlines.

Apr 3, 2025 - 16:24

Summary: Trump might have a solution to the TikTok ban, which comes in the form of a new company called TikTok America. The US President is expected to make an announcement soon, but it is unclear if this proposal has the blessing of the Chinese government.

The deadline for TikTok’s ban is this Saturday. So far, we haven’t heard anything that sounds like a deal is close. However, according to a report from The Information, US President Donald Trump might have a solution, which comes in the form of a new company called “TikTok America.”

Meet TikTok America

Basically, this TikTok America company Trump is proposing will be 50% owned by US investors. It will also license TikTok’s famed algorithm. It’s actually pretty clever. This means ByteDance will still partially own TikTok. The algorithm, which China deems as core technology, still belongs to ByteDance, too.

Licensing the technology also means that ByteDance will gain a new source of revenue. TikTok America will exist as a separate company that shares a similar name and the technology underlying TikTok. This could finally be the solution to a problem that just won’t go away.

However, as The Information’s report highlights, it remains unclear whether the Chinese government has approved this structure for the Trump administration’s “TikTok America” plan. After all, this proposal reduces ByteDance’s overall ownership in TikTok down to 19.9%. Existing investors will have a roughly one-third stake in TikTok America, while the remaining 50% goes to US investors.

However, some may still view it as a win that ByteDance gets to keep TikTok and hold on to its proprietary algorithm.

Other US bidders

Currently, it is still unclear who will be TikTok America’s investors. We’ve heard many names tossed into the ring. The most recent is Amazon. However, the general consensus is that Oracle will be the most likely candidate. US venture capital giant Andreessen Horowitz is also reportedly planning to join Oracle in its bid.

We’ve also heard other names like YouTuber MrBeast and Reddit’s co-founder Alexis Ohanian. The report claims that Trump will make an announcement soon. Trump recently stated his confidence that a deal will be struck before the deadline. However, as we’re only a few days away, the world is watching with bated breath.

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