The agreement marks a significant milestone for the short-video platform, which is used by more than 170 million Americans and has faced years of regulatory and political pressure over national security concerns. Those tensions date back to August 2020, when then-President Donald Trump first sought to ban TikTok over fears about Chinese government access to U.S. user data.
Under the deal, a newly formed entity, TikTok USDS Joint Venture LLC, will take charge of the U.S. app’s operations. American and international investors — including Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX — will collectively hold an 80.1% stake, while ByteDance will retain 19.9%.
The structure aligns with terms outlined last September, when Trump delayed enforcement of a law requiring ByteDance to divest TikTok’s U.S. business or face a ban. He later said the arrangement satisfied divestiture requirements under a 2024 statute aimed at limiting Chinese control of sensitive digital platforms.
Vice President JD Vance said in September that the new U.S. company would be valued at roughly $14 billion, below earlier analyst estimates, though the final valuation was not disclosed when the agreement was confirmed. The transaction is expected to close on January 22.
Governance, data security, and lingering questions
The White House has said the joint venture will operate TikTok’s U.S. app as a separate entity, but questions remain about ByteDance’s ongoing influence, particularly around the app’s algorithm and commercial ties to the global TikTok platform. On Thursday, the White House referred questions on the deal to TikTok.
In a memo to employees seen by Reuters, TikTok CEO Shou Zi Chew said the joint venture would function as an independent company with authority over U.S. data protection, algorithm security, content moderation, and software assurance. He added that TikTok’s global U.S. entities would separately manage product interoperability and certain commercial activities such as advertising, marketing, and e-commerce.
Despite these assurances, former National Security Council official Rush Doshi said it remains unclear whether TikTok’s core algorithm has been transferred, licensed, or remains under Beijing’s control, suggesting Oracle’s role may be limited to oversight and monitoring.
Chinese media reports have also raised doubts about the extent of ByteDance’s retreat, with some outlets saying the company expects to retain a significant operational role and share in revenues through related U.S. entities.
Oversight and political reaction
The governance framework includes a seven-member board for the new venture, with ByteDance appointing one director and U.S. representatives holding the majority of seats. Oracle will serve as TikTok’s “trusted security partner,” responsible for auditing compliance and safeguarding U.S. user data, which will be stored on Oracle-run cloud infrastructure within the United States.
The deal is expected to end years of efforts by U.S. lawmakers to force a divestment of TikTok’s American business. Republican Representative John Moolenaar, who chairs the House Select Committee on China, has said he plans to host the leadership of the new TikTok entity at a congressional hearing in 2026.
Trump, who has credited TikTok with helping his re-election campaign and has more than 15 million followers on the platform, has welcomed the deal. The White House itself launched an official TikTok account in August.
However, criticism has emerged from Democrats. Senator Elizabeth Warren said the agreement leaves many unanswered questions, arguing that Americans deserve clarity on whether political connections influenced the outcome. She described the transaction as a potential “billionaire takeover” that could further concentrate control over online content.
Trump has longstanding ties to Oracle founder Larry Ellison, whose family has backed several major media and technology deals. While Trump previously said figures such as Michael Dell and Rupert Murdoch could be involved, it remains unclear whether they ultimately participated in the final agreement.
As the closing date approaches, attention is likely to focus on regulatory approvals, the final governance structure, and whether the arrangement fully addresses U.S. concerns over data security and Chinese influence.