A spin-off deal saved TikTok’s US future. Sen. Ed Markey is questioning if it puts national security at risk
Spin-Off Deal Saves TikTok’s U.S. Future, Markey Questions Security Risks
A spin off deal saved TikTok – A spin-off deal saved TikTok from a potential U.S. government ban, but Senator Ed Markey is now raising doubts about whether the arrangement adequately safeguards national security. Nearly four months after the company’s operations were split into a new joint venture, the Massachusetts Democrat has expressed concerns that the structure still allows Chinese influence over critical data and algorithms. His latest scrutiny focuses on the joint venture’s ability to fulfill the requirements set by the 2024 law, which aimed to ensure TikTok’s U.S. version was fully independent from its parent company, ByteDance.
Legislative Framework and Political Delays
The 2024 law, passed under the Biden administration, required TikTok to either sell its U.S. operations to a domestic entity or dismantle them to prevent data leaks and content manipulation by Beijing. President Donald Trump, who had initially championed the ban, delayed enforcement during his second term, leading to negotiations that culminated in the spin-off deal. This compromise avoided an immediate ban but left key security measures to be determined by the joint venture’s terms.
The Joint Venture Structure and Ownership Dynamics
On January 1, 2026, the spin-off deal saved TikTok by establishing a new entity, TikTok US, under the control of a joint venture between Oracle, Silver Lake Partners, and MGX, an Emirati-backed firm. ByteDance retained a minority stake, holding over 30% of the venture, while also maintaining 19.9% equity. The leadership of the joint venture includes Adam Presser, a former executive who helped secure data protections, and Shou Chew, TikTok’s CEO. The board is composed of representatives from investor groups and ByteDance, which has sparked debates about the balance of power.
Markey’s Scrutiny of the Deal’s National Security Safeguards
In a May 29, 2026, letter, Markey criticized the joint venture for failing to fully insulate TikTok from Chinese control. He argued that the deal’s structure permits ByteDance to retain influence over essential functions such as e-commerce, advertising, and marketing. The senator also emphasized the need for transparency, demanding detailed information on how the joint venture plans to retrain algorithms and review code for potential manipulation. “Unless the process for code review is robust and verifiable, the spin-off deal saved TikTok’s U.S. future may not eliminate the threat of data control or algorithmic bias,” he warned.
Markey highlighted the risk of Chinese officials embedding malicious code into security patches without detection, suggesting the deal’s safeguards are insufficient. His concerns align with broader fears that the joint venture could still be vulnerable to external pressures, undermining the intent of the 2024 law. The senator called for stricter oversight to ensure the U.S. version of the app operates independently and remains aligned with national security goals.
Industry Reactions and Legal Protections
Supporters of the spin-off deal saved TikTok argue that the joint venture introduces necessary safeguards, including Oracle’s oversight of data storage and retraining of TikTok’s algorithm using U.S.-based systems. However, critics point out that the app still licenses its algorithm from ByteDance before retraining, a process that could allow the parent company to exert ongoing influence. The joint venture’s claims of “defined safeguards” are now under close examination, with calls for more concrete evidence of their effectiveness.
The deal’s supporters maintain that the ownership split ensures a balance of power, with American investors playing a pivotal role. They argue that the structure meets the legislative intent of the 2024 law by creating a U.S.-centric entity. Nonetheless, Markey’s letter underscores the ongoing debate over whether the spin-off deal saved TikTok’s U.S. operations from government scrutiny or merely shifted the risks to a private joint venture.
