The TikTok Deal Is Awful
3 minute readPublished: Thursday, January 22, 2026 at 10:21 pm
TikTok Deal Faces Scrutiny Despite Agreement
A tentative agreement regarding the future of TikTok in the United States appears to be nearing completion, following months of negotiations and shifting deadlines. The deal, involving TikTok parent company ByteDance, the U.S. government, and various investors, aims to address concerns over data security and potential Chinese government influence.
Under the proposed arrangement, a new U.S.-based entity, TikTok USDS Joint Venture LLC, will be established. While ByteDance will remain a minority owner, American investors, including Oracle and an investment fund from the United Arab Emirates, will hold majority ownership. This structure is intended to give American stakeholders greater control over content recommendation and algorithm management, shifting the focus towards U.S.-centric content.
However, the deal has raised several concerns. ByteDance will retain a significant stake in the company and will continue to handle certain commercial activities, including advertising and commerce features. Additionally, a revenue-sharing agreement will see a portion of TikTok USDS's earnings directed back to ByteDance.
Critics have also pointed to the involvement of the UAE, a country with its own human rights concerns, in the ownership structure. Furthermore, the deal mirrors aspects of the previously proposed "Project Texas," which aimed to transfer American user data to Oracle-owned servers. The new agreement, however, involves a broader range of investors and raises questions about the long-term security and privacy of user data.
The deal's impact on TikTok users is also uncertain. The shift in algorithm control could lead to a more right-leaning content stream, potentially altering the platform's current diversity of perspectives. The agreement is also under scrutiny from lawmakers, who are questioning the extent of remaining Chinese influence and data security risks.
BNN's Perspective: This deal represents a complex compromise. While it attempts to address national security concerns, it also raises questions about the balance of power and the potential for political influence. The involvement of foreign investors and the continued role of ByteDance warrant careful monitoring to ensure user data is protected and the platform remains a space for diverse voices.
Keywords: TikTok, ByteDance, China, US, Donald Trump, Oracle, data security, algorithm, content moderation, privacy, investment, UAE, Project Texas, Shou Zi Chew, Adam Presser, John Moolenaar.