The US-TikTok saga seems to have finally reached its conclusion, as the ByteDance-owned social media platform has completed a long-anticipated agreement to establish a majority American-owned entity for its US operations, averting a nationwide ban and concluding a protracted geopolitical standoff between Washington and Beijing. The deal, announced on January 22, 2026, transfers control of key aspects of the app to a consortium of investors led by Oracle, Silver Lake, and MGX, with ByteDance retaining a minority stake. This arrangement aims to address national security concerns over data access and algorithmic influence.
The new TikTok USDS Joint Venture LLC will oversee content moderation, data storage, and algorithm management for American users, who number more than 200 million. President Donald Trump, who facilitated the negotiations, hailed the outcome as a “dramatic, final, and beautiful conclusion” in a post on Truth Social, extending thanks to Chinese President Xi Jinping for approving the terms. Operationally, US user data will be stored in Oracle’s cloud infrastructure, subject to third-party cybersecurity audits.
The origins of TikTok’s US challenges trace back to 2019, when scrutiny intensified over its ownership by ByteDance, a Beijing-based technology firm. Concerns centered on potential obligations under Chinese law that could compel ByteDance to share user data with government authorities or manipulate content to align with state interests. These fears were amplified during the pandemic, as the app’s popularity surged, drawing in millions for short-form videos ranging from entertainment to political discourse.
In 2020, during his first term, Trump issued an executive order threatening to ban TikTok unless ByteDance divested its US assets, a move later blocked in court. Efforts to broker a sale involving Oracle and Walmart faltered amid legal hurdles and Beijing’s export controls on algorithms. The issue escalated in 2024 under President Joe Biden, who signed the Protecting Americans from Foreign Adversary Controlled Applications Act. This bipartisan legislation, upheld by the Supreme Court, required ByteDance to sell TikTok’s US operations, citing risks to national security.
The law’s deadline loomed large, prompting a brief outage of the app in late 2024 as enforcement neared. Public backlash was swift: Influencers and users mobilized protests, lobbied lawmakers, and migrated to alternatives like Instagram Reels and YouTube Shorts. Some even turned to Chinese platforms such as RedNote in protest. Congressional support for the ban waned amid widespread discontent, and the Biden administration deferred enforcement to the incoming Trump team. Trump, who had joined TikTok in 2024 to court young voters and pledged to “save” the platform, extended the deadline four times through executive orders. Negotiations accelerated in September 2025, culminating in a framework approved by the White House.
Under the finalized terms, ByteDance holds a 19.9% stake in the new entity, complying with the 2024 law’s divestiture requirements. Out of the rest of the stake, Oracle, Silver Lake, and Abu Dhabi-based MGX will own 50% of the new entity, while ByteDance’s existing investors will own the remaining 30.1%. The venture is valued at approximately $14 billion, according to statements from Vice President JD Vance, though independent estimates for TikTok’s US business have ranged from $35 billion to $50 billion in prior valuations. ByteDance’s global worth stands at around $480 billion in private markets. Leadership of the joint venture falls to Adam Presser, formerly TikTok’s head of operations, trust, and safety, as CEO. Will Farrell, previously the chief security officer for US data initiatives, assumes that role in the new entity.
The Tech Portal is published by Blue Box Media Private Limited. Our investors have no influence over our reporting. Read our full Ownership and Funding Disclosure →
