TikTok has averted a potential U.S. ban after its parent company, ByteDance, finalized a deal to sell the majority of its U.S. operations to a group of American investors. The agreement, completed Thursday, transfers control to a new entity and addresses national security concerns that have loomed over the popular video-sharing app for years.
TikTok’s Future in the U.S.
The new ownership group includes Oracle, Silver Lake, the Emirati firm MGX, and entities linked to Michael Dell. Together, they will control over 80% of TikTok’s U.S. assets, while ByteDance will retain approximately 19.9% of the capital. Over 30% of the new entity is held by existing ByteDance investors.
This resolution concludes a six-year legal battle and a period of regulatory uncertainty for TikTok. The company even experienced a 14-hour outage during this time. The deal was finalized just before a deadline set by former President Donald Trump to separate TikTok’s U.S. operations from Chinese control.
The newly formed company will operate under specific security measures designed to protect national security, including comprehensive data protection, algorithm security, content moderation, and software assurance for U.S. users. Adam Presser will serve as CEO, and Will Farrell as Chief Security Officer.
A History of Scrutiny
The conflict stemmed from concerns over potential data access by the Chinese government and the possibility of algorithmic manipulation. In 2024, President Joe Biden signed legislation requiring TikTok to separate from its Chinese parent company or face a ban. Previous attempts at a deal were complicated by trade tensions and new tariffs announced by the U.S.
According to a memo from TikTok CEO Shou Chew, the new company will oversee data management and most U.S. operations. Oracle will be responsible for data storage, and the new entity will handle content moderation for American users. ByteDance will continue to manage e-commerce, advertising, and marketing related to the platform.
The company also plans to retrain TikTok’s algorithm using data from U.S. users, while maintaining interoperability with the global platform. This, they state, will allow American creators to reach a wider audience and businesses to operate internationally.
Frequently Asked Questions
What prompted this sale?
The sale was prompted by U.S. national security concerns regarding potential Chinese government access to user data and the possibility of algorithmic manipulation. Legislation passed in 2024 required ByteDance to divest its U.S. operations or face a ban.
Who are the new owners of TikTok in the U.S.?
The new owners are a consortium of American investors including Oracle, Silver Lake, the Emirati firm MGX, and entities linked to Michael Dell. They collectively control over 80% of TikTok’s U.S. assets.
Will TikTok still operate as it does now?
TikTok will continue to operate, but under new security measures and with a new ownership structure. The company plans to retrain its algorithm using U.S. user data and maintain interoperability with the global platform.
As TikTok transitions under new ownership, it remains to be seen how effectively the security measures will be implemented and whether the agreement will fully address the concerns that led to this complex negotiation. Will this new structure be enough to satisfy regulators and ensure the long-term viability of TikTok in the United States?
