TikTok has completed a deal that ensures the app continues to operate in the United States. The company announced the agreement on Thursday, ending years of political and legal uncertainty.
The deal resolves a long-standing dispute between Washington and Beijing. The conflict began during Donald Trump’s first presidency, when he attempted to ban TikTok over national security concerns.
US law threatened to block the app in January 2025 unless ByteDance sold its American business. Trump delayed enforcement multiple times after returning to office.
The central issue focused on TikTok’s recommendation algorithm. Under the agreement, American owners now license the system, which will train solely on data from US users.
Analysts expect visible changes to the platform, but the full effect on roughly 200 million American users remains unclear.
Political pressure drives US-only operation
US officials pressured TikTok for years to separate from ByteDance. Lawmakers cited concerns that Chinese ownership could compromise user data.
They warned Beijing could force the company to hand over information on US users. TikTok and ByteDance repeatedly rejected the claims.
Trump first proposed banning TikTok in 2020. The idea gained traction under President Joe Biden. In 2024, Biden signed legislation requiring a sale or triggering a nationwide ban.
ByteDance challenged the law in court. In January last year, TikTok briefly went offline in the United States for 12 to 14 hours.
Service resumed after Trump, then president-elect, pledged to reverse the ban. Later, Trump said he reached an understanding with China to keep the platform running.
In December, TikTok signed binding agreements with American and international investors. CEO Shou Zi Chew confirmed the deal in an internal memo.
How the new US structure operates
The agreement establishes TikTok USDS Joint Venture LLC. The new entity will secure apps, algorithms, and user data under strict cybersecurity standards.
The joint venture will function independently, overseen by a seven-member board with an American majority. Adam Presser, formerly of WarnerMedia, now serves as chief executive.
Three managing investors each hold 15% of the US business. Oracle will secure American user data and supervise retraining of the recommendation algorithm.
Oracle is chaired by Larry Ellison, a major Republican donor and Trump ally. Silver Lake, a US technology investment firm managing about $116bn in assets, also participates. MGX, an Emirati investor in AI and technology, completes the group.
Ownership breakdown and leadership
ByteDance retains a 19.9% stake in the venture. Investors hold the remaining 35.1%, including Michael Dell’s family office and Vastmere Strategic Investments, an affiliate of Susquehanna International Group.
Susquehanna co-founder Jeff Yass, a Trump ally, held roughly 7% of ByteDance last year. Susquehanna managing director Mark Dooley will join the board.
Shou Zi Chew and executives from Oracle, Silver Lake, and MGX will also sit on the board.
Algorithm remains at the heart of the deal
TikTok’s algorithm is central to the US deal. Experts call it the platform’s defining asset.
A former social media executive said competitors could not replicate its success. Instagram Reels and YouTube Shorts never matched its performance. Early innovators, he explained, usually understand their technology best.
ByteDance initially refused to release the algorithm. Chinese authorities backed that stance. In September, China’s cybersecurity regulator signalled it might allow ByteDance to license the system to American owners.
Under the agreement, the algorithm will train solely on US user data, which will comply with American regulations. TikTok said Oracle will secure the system in its US cloud infrastructure.
Experts warn US users may notice a lighter, possibly slower app. Content recommendations could also become less precise than in the global version.
