Here’s what you should know about TikTok’s US deal

Tik Tokowned by Chinese company ByteDance, has been at the center of controversy in the United States for years now over concerns about the Chinese government’s potential access to user data.

Thursday, January 22, 2026 Tik Tok Announce TikTok USDS Joint Venture LLC has been officially established to comply with President Trump’s decisions Executive order Which agreed to sell TikTok’s US operations to a group of US investors. Now, ByteDance will own less than 20% of the new entity, with the rest of the stake falling under non-Chinese ownership.

Over the years, US users have often found themselves caught in the middle of this tension, facing uncertainty about how their access to the app will change – e.g. Creative people Who use TikTok Make a livingThe risks were even higher. Last year, the app experienced a temporary outage in the US, leaving millions of users in suspense before it was quickly restored. TikTok is back on the App Store and Google Play Store On February 2, 2025.

A number of investors competed to buy the app, and after President Trump extended the deadline to ban TikTok for the fourth time, the battle finally stopped. in December 2025TikTok has officially signed a deal to divest part of its US entity to a group of US investors.

Earlier in 2025, President Trump had done so Announce Chinese President Xi Jinping has given his approval to the TikTok deal, which would allow a consortium of American investors to take control of the platform. ByteDance has publicly stated that it will ensure the platform remains available to US users.

Who owns TikTok in the US?

ByteDance will retain approximately 20% of the company’s shares, while non-Chinese investors will retain the remaining 80% of ownership in the company. TikTok USDS joint venture.

The management investor group consists of Oracle, private equity firm Silver Lake, and investment firm MGX. These three investors will each own 15% of the US operations, or 45% collectively.

Other investors, including existing ByteDance investors, make up another 35% of the project’s ownership. This includes the Dell Family Office (Michael Dell’s investment firm), Susquehanna’s Vastmere, Alpha Wave Partners, and several other companies listed on TikTok press release.

Reports appreciation TikTok US is valued at around $14 billion – a figure also mentioned by Vice President J.D. Vance.

The newly formed TikTok USDS Joint Venture LLC will oversee the app’s operations, including data protection, algorithm security, content moderation, and software assurance.

Oracle will act as a trusted security partner, responsible for auditing and ensuring compliance with national security requirements, according to the memo. The company already provides cloud services for TikTok and manages user data in the US. Notably, Oracle previously made an offer to buy TikTok in 2020.

A White House official said earlier that Oracle will replicate and secure a new American version of the algorithm, and TikTok owners residing in the United States can rent the algorithm from ByteDance, which Oracle will then retrain.

ByteDance will not have access to information about TikTok users in the US or any influence on the US algorithm.

How will TikTok change for US users?

Since the deal was just finalized, it’s not clear exactly how TikTok’s 200 million US users will be affected.

Whereas earlier Reports Users in the US may need to move to a new platform, he suggested. Latest reports They denied the claim, and assured users that they would not need to download a new app.

It’s also unclear how users’ algorithmic feeds will be affected at this time.

How did we get here?

To fully understand this high-stakes drama, we’ll first revisit the timeline of TikTok’s turbulent relationship with the US government, which led to various legal battles and negotiations.

The drama first started in August 2020when Trump signed an executive order banning transactions with parent company ByteDance.

A month later, the Trump administration sought to force the sale of TikTok’s US operations to a US-based company. Key contenders include Microsoft, Oracle and Walmart. However, an American judge temporarily Forbidden Trump’s executive order allows TikTok to continue operating while the legal battle unfolds.

Things began to progress further after the transition to the Biden administration. after Senate The bill against TikTok passed, President Joe Biden I signed it.

In response, TikTok has filed a lawsuit against the US governmentchallenges the constitutionality of the ban and argues that the app and its American users have had their First Amendment rights violated. The company has consistently denied that it poses a security threat, stressing that its data stored in the United States complies with all local laws.

Fast forward to 2024: Trump He has had a change of heart since his first term and has sought a 50-50 ownership arrangement between ByteDance and a US company.

There were many contenders, including People’s View for TikToka consortium organized by the founder of Project Liberty Frank McCourt. This group has support from investment firm Guggenheim Securities and law firm Kirkland & Ellis. Supporters included the co-founder of Reddit Alexis OhanianTelevision personality and investor Kevin O’LearyThe inventor of the World Wide Web, Tim Berners-Lee, and the great research scientist David Clark.

He led another group called the Federation of American Investors Employer.com founder Jesse Tinsley It includes the co-founder of Roblox David BaszuckiAnchorage Digital co-founder, Nathan McCauley, and popular YouTuber MrBeast.

Others included in the run Amazon, AppLovin, Microsoft, Confusion Amnesty International, rumbleWalmart, Zoom, and former CEO of Activision Bobby KotickAnd former US Treasury Secretary Steven Mnuchin.

Story updated after publication.