TikTok Finalizes Deal to Continue Operations in the United States

TikTok has completed a long-awaited agreement to spin off its U.S. operations, ending years of uncertainty over American access to the popular short-video platform.

In a statement released Thursday, the company said the newly formed U.S. joint venture will operate under strict safeguards designed to address national security concerns. These measures include enhanced data protection, algorithm security, content moderation standards and software assurances for U.S. users.

Under the agreement, Oracle, UAE-based investment firm MGX and technology investment company Silver Lake will each hold a 15% stake in the venture. TikTok’s Chinese parent company, ByteDance, will retain a minority interest of 19.9%.

President Donald Trump welcomed the deal in a social media post, describing it as a victory that preserved the app for millions of Americans. He said TikTok would now be owned by “a group of great American patriots and investors,” adding that he hoped to be remembered for helping to keep the platform alive.

For TikTok’s more than 200 million U.S. users, the deal means continued access to the app, with no immediate changes expected to the user experience. However, adjustments may emerge gradually, particularly around the app’s recommendation algorithm. As part of the agreement, the new U.S. entity will retrain TikTok’s algorithm using data generated by American users, while Oracle will oversee data storage and security. This shift could affect how content is personalized and distributed over time.

Despite the restructuring, the global TikTok entity controlled by ByteDance will continue to manage key aspects of the business, including e-commerce, advertising and marketing for the U.S. platform.

The joint venture will be governed by a seven-member board made up primarily of American directors. Members include TikTok U.S. CEO Shou Chew, Oracle executive Kenneth Glueck, representatives from Susquehanna International Group and Silver Lake, an executive from MGX and other industry figures. Oracle, led by Trump ally Larry Ellison, will serve as the venture’s primary security partner.

Several uncertainties remain. TikTok has not disclosed the valuation of its U.S. operations, and the Chinese government has yet to publicly comment on the finalized deal. Some analysts also question whether the structure fully addresses the national security concerns outlined in U.S. legislation passed in 2024, which requires ByteDance to have no operational control over TikTok’s U.S. entity, a law upheld by the Supreme Court.

TikTok briefly went offline for U.S. users for 14 hours in January 2025 before President Trump directed the Justice Department to delay enforcement of the law.

According to TikTok, the new joint venture will also encompass other ByteDance-owned apps operating in the U.S., including CapCut and Lemon8.