After nearly four years of political tension, legal battles, and uncertainty, the long-running TikTok saga in the United States is finally nearing its conclusion. TikTok, owned by Chinese tech giant ByteDance, has officially signed a deal to divest part of its U.S. operations to an American investor group, addressing national security concerns over user data and foreign influence.
Why TikTok Faced a US Ban
Concerns around TikTok began in 2020, when U.S. officials warned that American user data could potentially be accessed by the Chinese government. Former President Donald Trump signed an executive order targeting ByteDance, aiming to force a sale or ban the app outright. Although courts temporarily blocked those efforts, TikTok remained under scrutiny across both Republican and Democratic administrations.
Earlier this year, U.S. users felt the impact firsthand when TikTok briefly disappeared from app stores, sparking panic among creators and businesses before being restored in February.
The TikTok US Ownership Deal
As of last week, TikTok finalized a deal to divest a portion of its U.S. entity to a consortium of American investors. According to documents reviewed by TechCrunch, the investor group includes Oracle, Silver Lake, and MGX, which together will own 45% of TikTok’s U.S. operations. ByteDance will retain just under a 20% stake, significantly reducing its influence.
The U.S. version of the platform will be managed by a newly formed entity called TikTok USDS Joint Venture LLC, responsible for operations, content moderation, algorithm oversight, and data security. TikTok U.S. is reportedly valued at around $14 billion, a figure confirmed by Vice President JD Vance.
Oracle’s Role and Data Security
Oracle plays a central role in the deal as TikTok’s trusted security partner. The company will audit operations, ensure compliance with U.S. national security terms, and manage American user data. Oracle will also replicate and secure a U.S.-based version of TikTok’s algorithm, which will be leased from ByteDance and retrained domestically.
Importantly, ByteDance will have no access to U.S. user data and no control over the U.S. algorithm, a key condition for approval by U.S. authorities.
What Changes for US Users?
According to Bloomberg, once the deal closes on January 22, 2026, the current TikTok app may be discontinued in the U.S. Users are expected to migrate to a new U.S.-specific platform, though details about its design, features, and transition process remain unclear.
How We Got Here
After years of lawsuits, bipartisan legislation, and multiple extensions of the TikTok ban deadline, President Trump now back in office shifted his stance, advocating for a shared ownership model rather than a full ban. Several high-profile investor groups competed for control, including bids backed by Amazon, Microsoft, MrBeast, and Reddit co-founder Alexis Ohanian.
With approvals from both Washington and Beijing, the TikTok deal marks a turning point ensuring the platform remains available in the U.S. while reshaping its ownership and governance for the future.
