TikTok has finalized a crucial deal to spin off its US operations, ensuring the app remains accessible to over 200 million American users and concluding years of uncertainty over its future. The transaction, which closed on January 22, 2026, just ahead of a deadline imposed by President Donald Trump, transfers control to a new joint venture dominated by American investors, with safeguards designed to protect national security.
The deal establishes a joint venture that will operate TikTok’s US assets, with 50% ownership held by a consortium including tech firm Oracle, private equity company Silver Lake, and Emirati-backed investment group MGX. ByteDance, TikTok’s Chinese parent company, retains a 19.9% stake, while affiliates of existing investors hold just over 30%. This structure aims to balance American oversight with continued global connectivity.
Leadership of the new entity includes CEO Adam Presser, who previously led TikTok’s US data security efforts, and Chief Security Officer Will Farrell. The board comprises representatives from key stakeholders, such as TikTok US CEO Shou Chew, Oracle’s Kenneth Glueck, and executives from Susquehanna International Group and Silver Lake, ensuring a mix of operational and security expertise.
President Trump played a pivotal role in the deal’s finalization, having repeatedly delayed enforcement of a 2024 law that required ByteDance to divest TikTok’s US operations or face a ban. In a social media post, Trump expressed gratitude to Chinese President Xi Jinping for approving the deal and celebrated saving TikTok, framing it as a victory for American users and investors.
For TikTok’s vast user base, the immediate impact is minimal, as the app will continue operating without interruption. However, the algorithm that curates content feeds will be retrained using data from American users, with Oracle overseeing data storage and security. This change could subtly alter the personalized experience over time, though core features like e-commerce and advertising will remain managed by ByteDance’s global entity.
National security concerns were central to the protracted negotiations, with US lawmakers fearing that ByteDance could be compelled by the Chinese government to manipulate TikTok’s algorithm. The 2024 law, upheld by the Supreme Court, prohibited any operational ties between ByteDance and a US-owned TikTok, but experts debate whether the current deal fully severs those links, given the continued algorithm licensing and shared business functions.
The Chinese government has not directly commented on the final agreement, but earlier statements emphasized a desire for solutions that comply with Chinese laws and ensure a fair environment for Chinese enterprises abroad. The deal became intertwined with broader US-China trade talks, with an earlier version derailed amid tariff announcements, highlighting the geopolitical tensions at play.
Looking ahead, the joint venture must navigate the retraining of TikTok’s algorithm and ensure compliance with US security protocols. While the deal averts an immediate ban, ongoing scrutiny from Congress and regulators is likely, as questions persist about data privacy and algorithmic integrity. For now, TikTok’s presence in the US is secured, marking a significant moment in the intersection of technology, policy, and international relations.
