TikTok has confirmed that it has finalised a deal that allows the popular short-video app to continue operating in the United States after years of political pressure and legal battles.
The announcement was made on Thursday, ending uncertainty over the app’s future in the US, where it has about 200 million users.
The agreement follows long-standing concerns by US authorities over national security and data protection, linked to TikTok’s Chinese parent company, ByteDance.
Washington had warned that the app would be banned from January 2025 if ByteDance failed to sell its US operations to American investors. However, enforcement of the law was repeatedly delayed by US President Donald Trump.
The dispute began during Trump’s first term in office, when he attempted to ban TikTok over fears that the Chinese government could access data belonging to American users. TikTok and ByteDance have consistently denied the allegation.
Under the new arrangement, TikTok’s US business will operate as a separate entity known as TikTok USDS Joint Venture LLC.
According to the company, the new firm will “secure US user data, apps and algorithms through enhanced data privacy and cybersecurity measures”.
The deal also covers TikTok’s powerful recommendation algorithm, widely seen as the app’s biggest strength. The algorithm has now been licensed to the US entity and will be trained only on data from American users.
TikTok said the algorithm would be “secured in Oracle’s US cloud environment”, adding that the move aligns with US regulations.
President Trump welcomed the agreement, writing on social media that he was “so happy to have helped in saving TikTok”.
The new company will be governed by a seven-member board with a majority of American directors. Adam Presser, a former WarnerMedia executive, has been appointed chief executive.
Three managing investors will each hold a 15 per cent stake in the US business. They are Oracle, the US cloud computing company chaired by Larry Ellison, Silver Lake, a US technology investment firm, and MGX, an Emirati investor in artificial intelligence and technology.
ByteDance will retain a 19.9 per cent stake in the new venture.
The remaining shares are held by several firms, including the family office of tech executive Michael Dell and Vastmere Strategic Investments, an affiliate of Susquehanna International Group.
TikTok’s global chief executive, Shou Zi Chew, will also sit on the board, alongside representatives of Oracle, Silver Lake and MGX.
Analysts say the separation could bring changes to how TikTok works in the US. Some experts believe the app may become slower or recommend content differently, since the algorithm will now rely only on American user data.
A former social media executive told the BBC that TikTok’s algorithm is its “secret sauce”, adding that competitors have struggled to match its performance.
Despite the concerns, TikTok insists the deal strikes a balance between national security demands and keeping the platform running for millions of users in the US.
