US-China Deal Reshapes TikTok’s Future in America
23rd Jan. 2026
The United States and China have approved a landmark agreement that restructures TikTok’s operations in the US. It places a majority control in the hands of a consortium of American-backed investors while allows the app to continue operation for its more than 200 million US users.
Under the deal that was announced on Thursday, a newly formed entity, called TikTok USDS Joint Venture LLC will take over the platform’s US business. TikTok said that the new company will operate “under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users”.
In this deal TikTok’s Beijing-based parent company ByteDance will retain a 19.9% minority stake. However, the control of the US version will shift to investors that include Oracle, Silver Lake, and the Abu Dhabi-based investment firm MGX. As a result, the new agreement brings to an end a year of uncertainty over the future of the TikTok in the US.
Trump welcomed the outcome and described it on Truth Social as a “very dramatic, final, and beautiful conclusion”. He also thanked Chinese President Xi Jinping for approving the deal. He further stated: “He could have gone the other way, but didn’t, and is appreciated for his decision.”
How the new TikTok ownership structure will work in the US-China Deal
The joint venture will be governed by a seven-member board of directors, in which the majority will be American Citizens. According to the company’s statement, Adam Presser will lead the new company, while TikTok chief executive Shou Chew will serve as a board member.
Oracle, which has played a central role in negotiations for several years, will hold a 15% ownership stake and act as a managing investor. Its co-founder, Larry Ellison, who is a long-time Trump ally, remains as the chairman and chief technology officer of the firm. Meanwhile, Silver Lake and MGX will also hold a significant stake, while strengthening US and allied oversight of the platform.
Crucially, TikTok said that its recommendation algorithm is a focal point of national security concerns, which will be retrained, tested, and updated using US user data only. Furthermore, the algorithm will be secured within Oracle’s US-based cloud infrastructure. At the same time, the US user data will be stored domestically and reviewed by independent third-party cybersecurity experts.
A years-long political battle between TikTok and the US came to an End
The agreement concludes a prolonged saga that has spanned two US administrations and drawn rare bipartisan consensus in Washington. Lawmakers from both parties had repeatedly warned that TikTok’s Chinese ownership posed potential risks that must be related to data access and influence operations.
Those concerns culminated in the Protecting Americans from Foreign Adversary Controlled Applications Act, which required ByteDance to divest TikTok or face a nationwide ban. Although the Supreme Court upheld the law. Its enforcement was also repeatedly delayed through executive orders issued by Trump after his return to office.
During that period, fears of a shutdown prompted many creators and businesses to migrate to rival platforms such as Instagram Reels and YouTube Shorts. Others who were seeking to protest US lawmakers flocked briefly to Chinese apps, including RedNote. Despite these disruptions, TikTok had largely remained available in the US, aside from a short blackout on the eve of the original ban deadline.
Web Resources on the TikTok-US Deal
1. Politico.com: TikTok lands $14B deal to avoid US ban
2. NYTimes.com: TikTok Strikes Deal for New U.S. Entity, Ending Long Legal Saga
3. BBC.com: TikTok closes deal with White House to split US app from global business
4. Bloomberg.com: TikTok Seals Deal to Operate in the US After Years of Drama
5. AcademicBlock.com: TikTok’s U.S. Ownership Restructures to Avoid US Ban