TikTok secures future in the US after deal hands control to American-backed venture
TikTok will stay online in the US after years of fighting and threats of being banned, thanks to a new deal that shifts control of its American operations to a majority US-owned joint venture.
The agreement ends a long-running standoff between Washington and Beijing that began during Donald Trump’s first term, when he tried to block the app over concerns about it being a threat to national security. Those concerns focused on TikTok’s Chinese owner, ByteDance, and fears that US user data or content recommendations could be influenced by China — claims the company has repeatedly denied.
Under the deal, TikTok’s US business will operate through a new entity called TikTok USDS Joint Venture LLC. American and global investors will own 80.1% of the venture, while ByteDance will keep a 19.9% stake. The app’s algorithm — widely seen as TikTok’s secret weapon — will be licensed to the US company and retrained using only American user data.
Oracle, Silver Lake and Abu Dhabi-based MGX will act as managing investors, each holding a 15% stake. Oracle will also secure US user data and host the algorithm in its American cloud infrastructure. Other investors include the Dell Family Office and several US-based investment firms. The joint venture will be run by Adam Presser, with TikTok’s global CEO Shou Zi Chew joining the board.
The deal arrives just in time. TikTok had faced a ban in January 2025 if ByteDance failed to sell its US operations, following legislation signed by Joe Biden in 2024. Enforcement of that law was delayed multiple times by Trump, who returned to office and publicly backed keeping the app alive.
Trump celebrated the agreement online, writing that he was "so happy to have helped in saving TikTok!" He later went further, saying TikTok "will now be owned by a group of Great American Patriots and Investors, the Biggest in the World." He also thanked China’s leader, saying Xi Jinping approved the deal and was “appreciated for his decision.”
Both US and Chinese authorities have signed off on the arrangement, according to a White House official. The Chinese embassy in Washington declined to comment.
The future shape of TikTok in the US is still an open question. Experts say retraining the algorithm on US data alone could change how content is recommended, potentially making the app feel different from its global version. As one former social media executive put it: "Generally, the one who introduces the technology just knows how to do it better."
Still, the deal brings stability for TikTok’s massive American audience. The US is the app’s largest market, with more than 150 million — and by some estimates over 200 million — users. After years of uncertainty, creators, advertisers and users now know the platform isn’t going anywhere anytime soon.
