TikTok has completed a major agreement that ensures the app continues operating in the United States. The company announced the deal on Thursday after years of legal and political uncertainty.
The agreement ends a long-running clash between Washington and Beijing. The dispute began during Donald Trump’s first presidency, when he tried to ban the app over national security concerns.
US legislation threatened to block TikTok in January 2025 unless ByteDance sold its American business. Trump later delayed enforcement several times after returning to office.
The negotiations focused on TikTok’s recommendation algorithm. Under the new structure, American owners now license the technology. The system will train only on data from US users.
Analysts expect noticeable changes to the platform. The long-term impact on about 200 million American users remains unclear.
A political battle that reshaped TikTok
US officials have pressured TikTok for years to separate from its Chinese owner. Lawmakers linked their demands to concerns over foreign control.
They warned that Beijing could force the company to surrender American user data. TikTok and ByteDance consistently denied those accusations.
Trump first proposed banning TikTok in 2020. Support for the idea increased during Joe Biden’s presidency. In 2024, Biden signed a law forcing a sale or triggering a nationwide ban.
ByteDance challenged the law in court. In January last year, TikTok temporarily went offline across the United States. The disruption lasted between 12 and 14 hours.
Service resumed after Trump, then president-elect, promised to reverse the ban. Trump later said he reached an understanding with China to keep TikTok running.
In December, TikTok signed binding agreements with American and international investors. Chief executive Shou Zi Chew confirmed the move in a company memo.
Inside the new US-focused structure
TikTok later outlined details of the deal. The agreement creates a new entity called TikTok USDS Joint Venture LLC. The company will protect data, apps and algorithms through strict cybersecurity measures.
TikTok says the joint venture will operate independently. A seven-member board with an American majority will oversee the business.
Adam Presser, a former WarnerMedia executive, now serves as chief executive. Three managing investors each hold 15% stakes in the US operation.
Oracle plays a leading role in the venture. The cloud computing company is chaired by Larry Ellison, a major Republican donor and Trump ally. Silver Lake also participates. The US investment firm manages about $116bn in assets. MGX, an Emirati investor focused on AI and technology, completes the group.
Oracle will secure American user data. The company will also oversee retraining of the recommendation algorithm.
Who owns what after the split
ByteDance retains a 19.9% stake in the new company. A group of investors owns the remaining 35.1%.
That group includes the family office of Michael Dell and Vastmere Strategic Investments. Vastmere operates as an affiliate of Susquehanna International Group.
Susquehanna co-founder Jeff Yass remains a Trump ally. His personal stake in ByteDance stood near 7% last year. Susquehanna managing director Mark Dooley will join the board.
Shou Zi Chew will also serve as a board member. Executives from Oracle, Silver Lake and MGX will sit alongside him.
The algorithm at the centre of the deal
TikTok’s algorithm remains the heart of the US negotiations. Industry insiders often describe it as the app’s most valuable asset.
A former social media executive previously said competitors failed to replicate its success. Features like Instagram Reels and YouTube Shorts never matched its performance. Early innovators, he argued, usually understand their systems best.
ByteDance initially refused to share the algorithm. Chinese authorities supported that position. In September, China’s top cybersecurity regulator signalled a change. Officials suggested they could allow ByteDance to license the technology to an American-controlled company.
Under the agreement, the algorithm will rely exclusively on US user data. That data must meet American regulatory standards. TikTok said Oracle will secure the system within its US-based cloud infrastructure.
US users are likely to notice changes soon. Experts expect a lighter and possibly slower app. They also warn that content recommendations may become less precise.
