After years of contention, the U.S. and China have finalized an agreement regarding the fate of TikTok in the United States. The deal aims to resolve national security concerns that prompted U.S. lawmakers to demand that TikTok's parent company, ByteDance, relinquish control of the app's American operations.

Under the agreement, a majority of TikTok's U.S. operations will be controlled by a consortium of American investors. This group includes Oracle, Silver Lake, and Abu Dhabi-based MGX, with each holding a 15% stake. ByteDance will retain a 19.9% stake in the U.S. business. Other investors include Susquehanna, Dragoneer and DFO, Michael Dell's family office. The new entity will be called TikTok USDS Joint Venture LLC.

The finalized deal comes after a period of uncertainty and executive actions. In April 2024, former President Joe Biden signed a bill requiring ByteDance to either sell TikTok's U.S. operations to an American-approved buyer or face a ban in the U.S. This law was enacted due to concerns that TikTok could be used to sway public opinion and that the Chinese government could access sensitive user data. The Supreme Court upheld the law, which led to a brief TikTok blackout in the U.S. early last year. Throughout 2025, President Donald Trump extended the deadline for a deal through multiple executive orders.

A key point of contention throughout negotiations has been the control and security of TikTok's algorithm, which shapes the content users see. While the deal is finalized, details regarding the algorithm's control remain unclear. TikTok has stated that the joint venture will "retrain, test and update" the content recommendation algorithm using U.S. user data. The algorithm will be secured within Oracle's U.S. cloud environment. Shou Chew, TikTok CEO, mentioned in December that the new independent entity would manage data protection, content moderation, and algorithm security.

The U.S. government has expressed concerns that the algorithm could be manipulated by Chinese authorities to promote specific content. Securing the algorithm and ensuring it operates independently from Chinese influence has been a priority for U.S. officials throughout the negotiation process.

The deal is intended to meet a January 22 deadline outlined by the Trump administration in an executive order, which granted a 120-day stay on the enforcement of the federal ban. The closing of this deal signifies a potential turning point in the relationship between the U.S. and China regarding technology and data security. However, the long-term implications and the true extent of American control over TikTok's algorithm will need to be monitored closely.