-
TikTok US deal ends divestment crisis, allows platform continue operations in the United States.
-
US national security concerns addressed as algorithm licensed, retrained, and data stored locally.
-
New TikTok US entity created with majority American ownership and board control.
TikTok has reached a landmark agreement that will allow the short-video platform to continue operating in the United States, formally separating its US business from its global operations.
The deal follows years of diplomatic and legal tensions between Washington and Beijing over national security concerns linked to TikTok’s Chinese parent company, ByteDance. US lawmakers had argued that ByteDance could be forced by the Chinese government to share American user data, allegations repeatedly denied by both companies.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
Under a 2024 US law, ByteDance was ordered to divest TikTok’s US operations or face a nationwide ban by January 2025. Enforcement of the legislation was delayed several times by President Donald Trump, creating space for extended negotiations.
At the height of the standoff, TikTok briefly went offline for US users before services were restored.
A central issue in the talks was TikTok’s recommendation algorithm, which shapes the content shown to users. Under the new agreement, the algorithm has been licensed to TikTok’s American owners and will be retrained exclusively with US user data. All American user data will now be stored and secured within the United States.
TikTok announced that its US operations will now be run independently under a newly created entity, TikTok USDS Joint Venture LLC.
READ ALSO: Police Arrest TikToker Peller Over Reckless Driving, Live-Streamed Car Crash
The company will be overseen by a seven-member board, with a majority of American directors. Former WarnerMedia executive Adam Presser has been appointed chief executive.
Ownership of TikTok’s US business is shared among Oracle, Silver Lake, and Emirati tech investor MGX, each holding 15 per cent stakes, while ByteDance retains a 19.9 per cent share. Oracle will also manage data security and oversee the algorithm through its US-based cloud infrastructure.
The remaining shares are held by other investors, including affiliates of Michael Dell and Susquehanna International Group. TikTok’s global CEO, Shou Zi Chew, will serve on the board.