TikTok has completed a deal that ensures the app will continue operating in the United States. The company announced the agreement on Thursday, ending years of legal and political uncertainty.
The move 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 operations. Trump delayed enforcement several times after returning to office.
The central issue focused on TikTok’s recommendation algorithm. Under the deal, American owners now license the system, which will train exclusively on US user data.
Experts expect noticeable changes to the platform, though the full effect on roughly 200 million American users remains unclear.
Political pressure drives US-only solution
US officials have pressured TikTok for years to separate from ByteDance. Lawmakers cited concerns that Chinese ownership could threaten user data.
They warned Beijing could compel the company to hand over information on American users. TikTok and ByteDance consistently denied the claim.
Trump first suggested banning TikTok in 2020. Momentum for the idea grew under President Joe Biden. In 2024, Biden signed legislation requiring ByteDance to sell TikTok or face a nationwide ban.
ByteDance challenged the law in court. In January last year, TikTok temporarily went offline in the United States for 12 to 14 hours.
Service resumed after Trump, then president-elect, promised to reverse the ban. Later, he said he had reached an understanding with China to keep TikTok active.
In December, TikTok signed binding agreements with American and international investors. CEO Shou Zi Chew confirmed the deal in a company memo.
How the US joint venture operates
The agreement creates TikTok USDS Joint Venture LLC. The company will protect apps, algorithms, and user data under strict cybersecurity rules.
The joint venture will operate 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 and leadership structure
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.
Jeff Yass, co-founder of Susquehanna and 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 serve on the board.
Algorithm remains at the center
TikTok’s algorithm is at the heart of the US deal. Experts call it the platform’s most valuable 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 added, usually understand their technology best.
ByteDance initially refused to release the algorithm. Chinese authorities supported that position. In September, China’s cybersecurity regulator indicated it could allow ByteDance to license the system to American owners.
Under the agreement, the algorithm will train only on US user data, which will meet American regulatory standards. TikTok said Oracle will secure the system in its US cloud infrastructure.
Experts warn US users may notice a lighter, possibly slower app. Recommendations may also become less precise than in the global version.
