Here’s What You Should Know About the US TikTok Deal

TikTok, owned by the Chinese company ByteDance, has been at the centre of controversy in the U.S. for four years, with concerns that the Chinese government could access user data.

As a result, U.S. users have often found themselves caught in the middle of this tension. Earlier this year, the app experienced a temporary outage in the U.S., leaving millions of users without service until it was quickly restored. TikTok returned to the App Store and Google Play Store in February.

Several investors competed to acquire the app, and after Trump extended the TikTok ban deadline for the fourth time, the battle is finally over. As of last week, TikTok officially signed a deal to divest a portion of its U.S. entity to a group of American investors. This comes nearly three months after President Donald Trump signed an executive order approving the sale of TikTok's U.S. operations to an American investor group.

A week earlier, President Trump announced that President Xi Jinping of China had approved a TikTok deal, allowing a consortium of U.S. investors to control the platform. ByteDance stated publicly that it would ensure the platform remains available to American users.

Who Owns TikTok in the U.S.?

According to a memo reviewed by TechCrunch, the investor group comprises Oracle, private equity firm Silver Lake, and investment firm MGX. Collectively, they will hold 45% of the U.S. operation, with ByteDance keeping nearly a 20% stake. Axios first reported the news, citing sources who estimate TikTok U.S. is valued at approximately $14 billion—a figure also mentioned by Vice President JD Vance.

In September, a report indicated that a "framework" agreement had been reached between the U.S. and China, with a consortium of investors—including Oracle, Silver Lake, and Andreessen Horowitz—overseeing TikTok's U.S. operations. These investors were expected to hold an 80% stake, with the remaining shares belonging to Chinese stakeholders.

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 serve as the trusted security partner, responsible for auditing and ensuring compliance with National Security Terms, according to the memo. The company already provides cloud services to TikTok and manages user data in the U.S. Notably, Oracle made a bid for TikTok in 2020.

A White House official previously said Oracle would replicate and secure a new U.S. version of the algorithm, and the U.S.-based TikTok owners could lease the algorithm from ByteDance, which Oracle will then retrain.

ByteDance will not have access to information about TikTok's U.S. users or any influence over the U.S. algorithm. The deal is scheduled to close on January 22, 2026.

What Users in the U.S. Should Know

 Bloomberg reports that when the deal is finalised, the TikTok app will be discontinued in the U.S., and users will need to transition to a new platform. However, the specifics of this platform remain largely unclear, including its features and how it will differ from the original app.

How Did We Get Here?

To fully understand this high-stakes drama, we'll first revisit the timeline of TikTok's tumultuous relationship with the U.S. government, which has led to various legal battles and negotiations.

The drama began in August 2020, when Trump signed an executive order banning transactions with ByteDance, the company. A month later, Trump's administration sought to force the sale of TikTok's U.S. operations to a U.S.-based company. The leading contenders included Microsoft, Oracle, and Walmart. However, a U.S. judge temporarily blocked Trump's executive order, allowing TikTok to continue operating while the legal battle unfolded.

Progress accelerated last year following the transition to the Biden administration. After the Senate passed the bill against TikTok, President Joe Biden signed it.

In response, TikTok sued the U.S. government, challenging the ban's constitutionality and arguing that the app and its American users were having their First Amendment rights violated. The company has consistently denied that it poses a security threat, asserting that its data stored in the U.S. complies with all local laws.

Fast-forward to today: Trump has changed his position since his first term and is seeking a 50-50 ownership arrangement between ByteDance and a U.S. company. There have been several contenders, including The People's Bid for TikTok, a consortium organised by Project Liberty founder Frank McCourt. This group has the support of investment firm Guggenheim Securities and the law firm Kirkland & Ellis. Supporters include Reddit co-founder Alexis Ohanian, TV personality and investor Kevin O'Leary, inventor of the World Wide Web Tim Berners-Lee, and senior research scientist David Clark.

Another group, called the American Investor Consortium, is led by Employer.com founder Jesse Tinsley and includes Roblox co-founder David Baszucki, Anchorage Digital co-founder Nathan McCauley, and famous YouTuber MrBeast. Others in the running included Amazon, AppLovin, Microsoft, Perplexity AI, Rumble, Walmart, Zoop, former Activision CEO Bobby Kotick, and former U.S. Treasury Secretary Steven Mnuchin.

This story has been updated after publication.