After years of legal uncertainty, political scrutiny, and repeated threats of a nationwide ban, TikTok’s future in the United States has finally been secured. On December 18, 2025, TikTok CEO Shou Zi Chew confirmed that binding agreements have been signed to transition TikTok’s U.S. operations into a new, independent structure effectively complying with the U.S. government’s long-standing “divest-or-ban” mandate.
The landmark deal, valued at approximately $14 billion, creates a path forward for the app’s 170 million American users while addressing national security concerns tied to its Chinese parent company, ByteDance.
A New Ownership Structure for TikTok US
Under the agreement, TikTok’s U.S. business will operate as a new entity named TikTok USDS Joint Venture LLC. Ownership is carefully divided to limit ByteDance’s influence:
- 45% will be controlled by a U.S.-led consortium managed by Oracle, Silver Lake, and Abu Dhabi’s MGX, each holding roughly equal stakes.
- 30.1% will remain with affiliates of existing ByteDance investors.
- 19.9% will be retained by ByteDance, ensuring it remains a minority shareholder with no operational control.
This structure is designed to meet U.S. legal requirements while avoiding a full forced sale.
Oracle’s Expanded Role in Data Security
Oracle’s role expands significantly under the new deal. No longer just TikTok’s cloud provider, Oracle becomes the platform’s official Trusted Security Partner. All sensitive U.S. user data will now be stored exclusively on Oracle’s U.S.-based servers, ensuring data sovereignty.
In addition, Oracle will have ongoing authority to audit TikTok’s source code, monitor system updates, and enforce compliance with national security obligations.
The Algorithm Stays—With Limits
One of the most controversial aspects of the agreement involves TikTok’s recommendation algorithm. Rather than being removed entirely, the algorithm will be retrained solely on U.S. user data. This process, overseen by Oracle, aims to prevent foreign influence while preserving the highly engaging “For You” feed that defines TikTok’s success.
Industry analysts note that this shift could subtly change content discovery patterns beginning in early 2026.
American Governance and Final Deadline
Governance will be handled by a seven-member board, the majority of whom must be U.S. citizens. This board will have full authority over content moderation and data protection policies in the U.S.
The transaction is set to close on January 22, 2026, just one day before the final executive order keeping TikTok online expires making the timing critical.
What It Means for Users
For most Americans, TikTok will continue to function as usual. However, behind the scenes, the platform is entering a new era one defined by U.S. oversight, stricter governance, and a carefully reengineered algorithm built specifically for American users.
