TikTok has completed an agreement that keeps the short-video platform running in the United States. The company announced the deal on Thursday after years of political pressure.
The move concludes a long dispute between Washington and Beijing that began during Donald Trump’s first presidency. Trump sought to block the app over national security concerns but failed to impose a lasting ban.
US law threatened to shut the app in January 2025 unless ByteDance sold its American business. Trump later delayed enforcement several times after returning to office.
The dispute centred on TikTok’s recommendation algorithm. Under the new structure, American owners now license the system. The algorithm will train solely on data from US users.
Industry experts expect noticeable changes to the platform. They cannot yet predict the full impact on about 200 million American users.
How political pressure forced a deal
US officials have pushed TikTok to separate from ByteDance for several years. Lawmakers linked their demands to fears around Chinese ownership.
They argued that Beijing could force the company to share American user data. TikTok and ByteDance repeatedly denied those allegations.
Trump first suggested banning TikTok in 2020. Support for the idea grew during Joe Biden’s presidency. In 2024, Biden signed a law ordering a sale or triggering a nationwide ban.
ByteDance challenged the law in court. In January last year, TikTok briefly went offline across the US for up to 14 hours. The service returned after Trump, then president-elect, pledged to reverse the ban.
Trump later said he reached an understanding with China to keep TikTok active. In December, TikTok signed binding agreements with American and global investors. Chief executive Shou Zi Chew confirmed the step in a company memo.
TikTok later detailed the agreement. The deal creates TikTok USDS Joint Venture LLC. The new company will protect data, apps and algorithms through strict cybersecurity controls.
A reshaped ownership model
TikTok says the joint venture will operate independently. A seven-member board with an American majority will oversee the business.
Adam Presser, previously an executive at WarnerMedia, now serves as chief executive. Three managing investors each hold 15% of the US operation.
Oracle plays a leading role in the structure. The cloud computing company is chaired by Larry Ellison, a major Republican donor and Trump ally. Silver Lake, a US technology investment firm, also participates. The firm manages roughly $116bn in assets. MGX, an Emirati investor focused on AI and technology, completes the group.
Oracle will secure American user data. The company will also supervise retraining of the recommendation algorithm.
ByteDance keeps a 19.9% stake in the venture. A group of investors owns the remaining 35.1%. This group includes the family office of Michael Dell and Vastmere Strategic Investments. Vastmere links to Susquehanna International Group.
Susquehanna co-founder Jeff Yass remains a Trump ally. His personal stake in ByteDance stood near 7% last year. Susquehanna managing director Mark Dooley will join the board.
Shou Zi Chew will also sit on the board. Executives from Oracle, Silver Lake and MGX will serve alongside him.
The fate of TikTok’s core technology
The algorithm sits at the heart of the US negotiations. Observers often describe it as TikTok’s defining advantage.
A former social media executive previously said rivals failed to match its performance. Services like Instagram Reels and YouTube Shorts never achieved similar results. Early innovators, he argued, usually understand their technology best.
ByteDance initially refused to release the algorithm. Chinese authorities supported that position. In September, China’s top cybersecurity regulator signalled a shift. Officials suggested they could allow ByteDance to license the system to an American-controlled company.
Under the final agreement, the algorithm will rely only on US user data. That data must meet American regulatory standards. TikTok said Oracle will secure the system inside its US-based cloud infrastructure.
American users will likely notice changes soon. Experts expect a lighter and possibly slower app. They also warn that content recommendations may become less precise.
