HELENA — The owners of TikTok have announced a new U.S.-based entity will take over managing the app in this country. It could mark the end of a yearslong battle over TikTok’s ability to operate in the U.S. – a battle that heated up when Montana passed a state-level ban in 2023.
(Watch the video for more on what's next for TikTok in Montana.)
On Thursday, TikTok announced the creation of a new company called “TikTok USDS Joint Venture.” Among its owners will be the tech company Oracle and investment firms Silver Lake and MGX – and ByteDance, TikTok’s China-based parent company, will retain a minority share.
In recent years, elected leaders have warned that the app could expose users’ data to China. To address those concerns, the new company promises to store American users’ data within the U.S., in Oracle’s cloud, and to train TikTok’s recommendation algorithm for the U.S. only on American data.
A federal law from 2024 required TikTok to be sold to a company outside China or face a nationwide ban. It was set to go into effect last year, but President Donald Trump announced his administration wouldn’t enforce it while they attempted to reach an agreement on new ownership.
Trump said on the social media platform Truth Social Thursday that TikTok’s new structure would comply with federal requirements to keep the app operating.
“I am so happy to have helped in saving TikTok!” he wrote. “It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice.”
Montana had its state ban on TikTok in place before the federal government took action. Senate Bill 419 was passed by lawmakers in the 2023 legislative session and signed into law by Gov. Greg Gianforte. However, it never actually took effect. A federal judge blocked the ban, in response to a lawsuit from a group of Montana-based content creators who argued it violated free expression rights.
Now, it’s possible the law could be about to go away on its own. SB 419 included a provision that automatically invalidates the ban if TikTok is acquired by a company that’s not incorporated in China or another country designated as a “foreign adversary” by the federal government.
Attorney General Austin Knudsen was one of the main backers of Montana’s state ban. MTN asked his office if he believed the deal would be enough to void the law.
"Attorney General Knudsen has been the leader in the effort to protect Americans’ security and privacy posed by TikTok,” spokesperson Amanda Braynack said in a statement. “At this time, we are still evaluating the deal and its implications on our ongoing litigation."
The content creators’ lawsuit against SB 419 has been sitting in the U.S. 9th Circuit Court of Appeals since May 2024, with no updates. Judges delayed proceedings while the parties waited for a resolution on the nationwide ban.
