Kamal Ghorui
TikTok has recently finalised a deal with investors to create its own standalone US company, dodging a potential nationwide ban after years of drama over the app’s reliability and transparency.The popular short-video app, loved by over 200 million Americans and 7.5 million businesses, will now operate as a fully US-run version of TikTok, led by American investment firms, some with close ties to President Donald Trump. But a twist in the story came when California Governor Gavin Newsom pointed fingers at TikTok for allegedly silencing voices critical of Trump.
Photo via ANI
California governor fires claims of censoring anti-Trump content on TikTok
California Governor Gavin Newsom kicked things off on Monday by announcing a probe into claims that TikTok is blocking content criticising President Trump, in a post on X.The Democrat backing TikTok is a longtime Trump foe. He posted on social media, “It’s time to investigate. I am launching a review into whether TikTok is violating state law by censoring Trump-critical content,” according to his office’s X statement. His team added that they had “independently confirmed instances” of suppressed anti-Trump posts following the app’s recent ownership shake-up.
TikTok’s massive US ownership change
All of this began when TikTok finalised a joint venture last week, slashing Chinese parent ByteDance’s stake to 19.9 per cent and handing majority control to American firms, including Trump allies.
Users post alleged anti-Trump content ban on TikTok
Governor Newsom highlighted user complaints, sharing a screenshot of someone blocked from sending the word “Epstein”, relating the content to the late Jeffrey Epstein, Trump’s former associate and convicted sex offender whose files sparked bipartisan backlash last year.
TikTok pushes back on the drama
TikTok pushed back, blaming a data-centre outage for glitches that removed content, rather than deliberate censorship. “Although the network has been restored, the outage triggered a series of system failures that we are actively working to rectify,” a representative for TikTok’s US joint venture stated online before Newsom’s post, as reported by The Guardian.
What is the new TikTok US?
TikTok’s new deal creates a separate US company called TikTok USDS (US Data Security). It will securely store American user data, comply with cybersecurity rules, retrain its algorithm using US data, and strengthen safety through improved moderation and reporting. The company is led by CEO Adam Presser and backed by a mostly American board, which includes TikTok CEO Shou Zi Chew.
Who owns TikTok US?
TikTok US is not owned by a single entity; it is a joint venture with multiple investors sharing ownership. ByteDance retains a 19.9 per cent stake, despite earlier Biden-era laws calling for a full divestment.Other major partners hold 15 per cent stakes each, including Silver Lake, Oracle – the cloud giant run by Trump ally Larry Ellison – and MGX, the UAE’s AI fund led by security chief Tahnoun bin Zayed.Eight additional partners include the Dell Family Office, led by Michael Dell, who is also a Trump supporter, as well as Vastmere, Alpha Wave, Revolution, Merritt Way, Via Nova, Virgo Li, and NJJ Capital.
