TikTok has finalised a deal that will allow the short-video platform to continue operating in the United States, ending years of political and legal uncertainty over its future in the country.
The agreement follows a prolonged dispute between Washington and Beijing that began during Donald Trump’s first term, when he attempted to ban the app over national security concerns linked to its Chinese parent company, ByteDance. US lawmakers have long argued that TikTok could be compelled by Beijing to hand over American user data, a claim both TikTok and ByteDance have repeatedly denied.
Under US legislation signed in 2024, ByteDance was required to sell TikTok’s US operations or face a nationwide ban by January 2025. While the app briefly went offline for American users earlier this year, enforcement of the ban was repeatedly delayed by President Trump.
At the heart of the dispute was TikTok’s powerful content-recommendation algorithm. As part of the new deal, the algorithm has been licensed to the app’s US entity and will be retrained exclusively on American user data. TikTok said this data will be secured through enhanced privacy and cybersecurity measures.
The agreement establishes a new company, TikTok USDS Joint Venture LLC, which will operate independently with a seven-member board dominated by American directors. Former WarnerMedia executive Adam Presser has been appointed chief executive.
Oracle, Silver Lake and Abu Dhabi-based MGX are the joint venture’s three managing investors, each holding a 15% stake. Oracle will oversee the security of US user data and manage the retraining of the algorithm within its US cloud infrastructure. ByteDance will retain a 19.9% ownership stake, while the remaining shares are held by a group of US-linked investment firms.
TikTok’s global chief executive, Shou Zi Chew, will sit on the board of the new company alongside representatives from the main investors.
President Trump welcomed the deal, saying he was pleased to have helped keep TikTok available to American users. The White House and China’s embassy in Washington have been contacted for comment.
Experts say the changes could alter how the app functions in the US, potentially affecting performance and content recommendations. While the long-term impact on TikTok’s 200 million American users remains uncertain, the deal marks a significant shift in how the platform operates and how its most valuable technology is controlled.
