Alphabet Stakeholder Joins Lawsuit Against Trump and Bondi Over TikTok Spinoff
Alphabet shareholder Zhaocheng Anthony Tan and Meta investor Garrett Reid filed a lawsuit challenging the Trump administration’s approval of ByteDance’s deal to spin off TikTok into a majority U.S.-owned entity. Plaintiffs argue the pact violates the 2024 law requiring divestiture and has caused financial harm to rival platform investors.
1. Lawsuit Filed by Investors
Zhaocheng Anthony Tan, an Alphabet shareholder, and Garrett Reid, a Meta investor, have initiated legal action against former President Trump and ex-Attorney General Pam Bondi. They claim the executive approval of the TikTok spinoff deal was unlawful and seek to renegotiate its terms.
2. Allegations of Unlawful Approval
Plaintiffs contend the agreement allowing ByteDance to spin off TikTok into a predominantly American-owned joint venture still lets it control core operations, violating the 2024 law that mandated full divestiture by January 2025 or a ban. They assert this has disadvantaged investors in competing platforms, creating financial harm.
3. Background on TikTok Spinoff
In January 2026, ByteDance divested 80% of its U.S. assets to partners including Oracle, Silver Lake and MGX, forming a majority American-owned entity to address national security concerns and comply with federal requirements without imposing a U.S. ban.