The popular social media app TikTok, owned by the Chinese company ByteDance, has been embroiled in controversy in the United States for the past four years. Concerns have been raised about potential access to user data by the Chinese government, leading to a tense situation for American users. Earlier this year, the app faced a temporary outage in the U.S., causing uncertainty among millions of users before quickly being restored to the App Store and Google Play Store in February.
After a prolonged battle, a deal has finally been reached regarding the ownership of TikTok in the U.S. A group of American investors, including Oracle, private equity firm Silver Lake, and investment firm MGX, will acquire a 45% stake in the U.S. operations, with ByteDance retaining nearly 20%. The deal values TikTok U.S. at approximately $14 billion, as reported by Axios.
The newly formed entity, “TikTok USDS Joint Venture LLC,” will oversee the app’s operations, focusing on data protection, algorithm security, content moderation, and software assurance. Oracle will play a crucial role as the trusted security partner, ensuring compliance with National Security Terms. The company will also manage user data in the U.S., retrain the algorithm, and ensure that ByteDance does not have access to information about U.S. users or influence over the U.S. algorithm.
The deal is set to close on January 22, 2026, marking a significant milestone in the ongoing saga of TikTok’s ownership in the U.S. Once finalized, reports suggest that the TikTok app will be discontinued, and users will need to transition to a new platform. However, details about this new platform remain unclear, including its features and differences from the original app.
To understand how we arrived at this point, it’s crucial to revisit the timeline of TikTok’s tumultuous relationship with the U.S. government. From Trump’s executive orders to legal battles and negotiations, the journey has been fraught with challenges. However, recent developments indicate a shift in approach, with efforts to establish a 50-50 ownership arrangement between ByteDance and a U.S. company.
Various contenders, including The People’s Bid for TikTok and the American Investor Consortium, have emerged in the race to acquire TikTok’s U.S. operations. With support from prominent figures like Alexis Ohanian and Kevin O’Leary, these groups are vying for control of the popular app. As the story continues to unfold, the future of TikTok in the U.S. remains uncertain, with multiple stakeholders competing for ownership.
