Here’s what you need to know about the US TikTok deal

TikTokowned by the Chinese company ByteDance, has been at the center of controversy in the US for four years now due to concerns about the Chinese government’s access to it.

As a result, US users have often found themselves at the center of these problems. Earlier this year, the app was temporarily shut down in the US leaving millions of users in limbo before it was quickly restored. TikTok returned to the App Store and Google Play Store in February.

Several advertisers competed to buy the app, and after Trump extended TikTok’s ban for a fourth time, the battle is over. Like about last weekTikTok has officially signed an agreement to give a part of its organization in the US to a group of American investors.

This comes nearly three months after President Donald Trump signed the executive order which approves the sale of TikTok services in the US to an American financial group.

A week later, President Trump he announced that Chinese President Xi Jinping approved the TikTok deal, which would allow a group of US investors to control the platform. ByteDance has publicly stated that it will ensure that the platform remains available to American users.

Who has TikTok in the US?

According to a memo seen by TechCrunch, the investor group is made up of Oracle, Silver Lake’s private equity firm, and MGX. Together, they hold 45% of the US operation, with ByteDance keeping about 20%. Axios He reported on the matter, citing sources that say TikTok US is worth about $14 billion – a figure that was also mentioned by Vice President JD Vance.

In September, a report showed that a “framework” deal was established between the US and China, with a consortium of businesses – including Oracle, Silver Lake, and Andreessen Horowitz – overseeing TikTok’s operations in the US. These suppliers are expected to have a share of 80%, with the remaining shares to be owned by the Chinese.

The newly formed “TikTok USDS Joint Venture LLC” will manage the app’s operations, including data security, algorithm security, content control, and app verification.

Oracle will act as a trusted security partner, responsible for monitoring and ensuring compliance with National Security Standards, according to the memo. The company already provides cloud services for TikTok and manages user data in the US In particular, Oracle already created TikTok back in 2020.

An official at the White House has previously said that Oracle will review and protect the new US version of the algorithm, and the owners of TikTok in the US can borrow the algorithm from ByteDance, which Oracle will resume.

ByteDance will not have access to information about US TikTok users or anything about the US algorithm.

The deal is expected to expire on January 22, 2026.

What US users need to know

Reports from Bloomberg indicates that after the deal is completed, the TikTok app will be suspended in the US and users will need to switch to the new platform. However, the specifics of the platform are still unclear, including its features and how it will differ from the original app.

How did we get here?

To better understand the drama, we will first look at the period of TikTok’s relationship with the US government, which led to various conflicts and discussions.

The drama started right away August 2020when Trump signed an executive order banning the sale of ByteDance’s parent company.

A month later, the Trump administration sought to force the sale of TikTok’s US operations to a US company. Competitors included Microsoft, Oracle, and Walmart. However, the US judge temporarily prohibited Trump’s order, allowing TikTok to continue operating while the legal battle rages on.

Things started to improve last year following the transition of the Biden administration. Prior to Senate filed a bill against TikTok, President Joe Biden he signed.

In response, TikTok sued the US governmentchallenging the ban and arguing that the program and its American users are violating their First Amendment rights. The company has always denied that it poses a security threat, saying that data stored in the US complies with all local laws.

Fast forward to today: Trumpet has been changing since its first term and is trying to achieve a 50-50 ownership arrangement between ByteDance and the US company.

There have been several competitors, including People’s Demand for TikTok a partnership organized by the founder of Project Liberty Frank McCourt. The group is backed by investment firm Guggenheim Securities and law firm Kirkland & Ellis. Supporters include Reddit co-founder Alexis OhanianTV personality and investor Kevin O’Learythe founder of the World Wide Web Tim Berners-Lee, and the great research scientist David Clark.

Another group, called the American Investor Consortium, is led by Employer.com the initiator Jesse Tinsley and include the co-founder of Roblox David BaszuckiAnchorage Digital co-founder Nathan McCauley, is a popular YouTuber MrBeast.

Others are running too Amazon, AppLovin app, Microsoft, AI disruption, RumbleWalmart, Zoop, former CEO of Activision Bobby Kotickand former US Treasury Secretary Steven Mnuchin.

This article has been updated after publication.