TikTok has completed a deal that allows the popular short-video app to keep operating in the United States. The company announced the agreement on Thursday. The move ends years of political pressure and uncertainty around the platform’s future in the country.
The agreement follows a long dispute between Washington and Beijing that started during Donald Trump’s first term. At that time, Trump attempted to ban the app over national security concerns but failed.
US law planned a ban for January 2025 unless TikTok’s Chinese owner, ByteDance, sold its American operations. Trump repeatedly delayed enforcement of that legislation after returning to office.
The main dispute focused on TikTok’s powerful recommendation algorithm. That system now operates under a licence granted to the app’s American owners. The algorithm will train exclusively on US user data.
Experts expect noticeable changes, but they cannot yet predict the full impact. Around 200 million Americans currently use the app.
What the deal is really about
For years, US officials pressured TikTok to sell its American business. Lawmakers cited concerns linked to ByteDance’s Chinese ownership.
Politicians feared Beijing could force the company to hand over American user data. TikTok and ByteDance consistently rejected those accusations.
Trump first raised the idea of a TikTok ban in 2020. Momentum grew during Joe Biden’s presidency. In 2024, Biden signed a law demanding a sale or a nationwide ban.
ByteDance challenged the law in court. In January last year, TikTok briefly went offline in the US for up to 14 hours. The app returned after Trump, then president-elect, promised to reverse the ban.
Trump announced in September that he had reached an understanding with China to keep TikTok running. In December, TikTok signed binding agreements with American and global investors. Chief executive Shou Zi Chew confirmed the move in an internal memo.
TikTok later released more details. The deal creates a new company called TikTok USDS Joint Venture LLC. The firm will secure user data, apps and algorithms through strict privacy and cybersecurity measures.
Trump praised the outcome on social media. He said he was happy to have helped save TikTok.
Who controls TikTok in the US now
TikTok says the new joint venture will operate independently. A seven-member board with an American majority will govern the company.
Adam Presser, formerly an executive at WarnerMedia, now serves as chief executive. Three managing investors each hold 15% stakes in the US business.
Oracle leads the group. The cloud computing company is chaired by Larry Ellison, a major Republican donor and Trump ally. Silver Lake, a US technology investment firm, also participates. The firm manages about $116bn in assets. MGX, an Emirati investor focused on AI and technology, completes the trio.
Oracle will secure American user data. The company will also oversee retraining of the recommendation algorithm.
ByteDance retains a 19.9% stake. The remaining 35.1% belongs to several investors. They include the family office of Michael Dell and Vastmere Strategic Investments. Vastmere links to Susquehanna International Group.
Jeff Yass, a Trump ally, co-founded Susquehanna. His personal stake in ByteDance stood near 7% last year. Susquehanna managing director Mark Dooley will sit on the new board.
The board will also include Shou Zi Chew. Executives from Oracle, Silver Lake and MGX will join him.
The future of TikTok’s algorithm
The algorithm sits at the centre of the TikTok debate. Industry insiders often call it the app’s secret weapon.
A former social media executive previously explained that rivals failed to copy it. Platforms like Instagram Reels and YouTube Shorts never matched its performance. Early innovators, he said, usually understand their technology best.
ByteDance initially refused to share the algorithm. The Chinese government supported that position. In September, China’s top cybersecurity regulator signalled a shift. Authorities indicated they could allow ByteDance to license the system to an American owner.
Under the agreement, the algorithm will train only on US data. That data must meet American regulatory standards. TikTok said Oracle will secure the system inside its US cloud environment.
American users will soon notice changes. Experts expect a lighter and possibly slower app. The algorithm may also recommend content less precisely than before.
