Here’s what you should know about TikTok’s US deal

TikTok, which is owned by Chinese company ByteDance, has been at the center of controversy in the United States for four years now over concerns about the Chinese government’s access to user data.

As a result, American users often found themselves caught in the middle of this tension. Earlier this year, the app experienced a temporary outage in the US, leaving millions of users in suspense before it was quickly restored. TikTok returned to the App Store and Google Play Store in February.

A number of investors competed to buy the application, and after Trump extended the deadline to ban TikTok for the fourth time, the battle finally ended. As of last week, TikTok has officially signed a deal to divest part of its US entity to a group of US investors.

This comes nearly three months after President Donald Trump signed an executive order approving the sale of TikTok’s US operations to a group of US investors.

A week ago, President Trump announced that Chinese President Xi Jinping had given his approval to the TikTok deal, which would allow a consortium of American investors to take control of the platform. ByteDance has publicly stated that it will ensure the platform remains available to US users.

Who owns TikTok in the US?

According to the memo seen by TechCrunch, the investor group consists of Oracle, private equity firm Silver Lake, and investment firm MGX. Collectively, they will own 45% of US operations, with ByteDance retaining a roughly 20% stake. Axios first reported the news, citing sources valuing TikTok US at around $14 billion — a figure also cited by Vice President JD Vance.

In September, a report indicated that a “framework” deal had been struck between the US and China, with a consortium of investors – including Oracle, Silver Lake, and Andreessen Horowitz – overseeing TikTok’s US operations. These investors were expected to hold an 80% stake, and the remaining shares would be owned by Chinese stakeholders.

The newly formed TikTok USDS Joint Venture LLC will oversee the app’s operations, including data protection, algorithm security, content moderation, and software assurance.

Oracle will act as a trusted security partner, responsible for auditing and ensuring compliance with national security requirements, according to the memorandum. The company already provides cloud services for TikTok and manages user data in the US. Notably, Oracle previously made an offer to buy TikTok in 2020.

A White House official said earlier that Oracle will replicate and secure a new American version of the algorithm, and TikTok owners residing in the United States can rent the algorithm from ByteDance, which Oracle will then retrain.

ByteDance will not have access to information about TikTok users in the US or any influence on the US algorithm.

The transaction is scheduled to close on January 22, 2026.

What US users should know

Reports from Bloomberg indicate that upon completion of the deal, TikTok will be discontinued in the US and users will need to move to a new platform. However, the details of this platform remain largely unclear, including its features and how it will differ from the native app.

How did we get here?

To fully understand this high-stakes drama, we’ll first revisit the timeline of TikTok’s turbulent relationship with the US government, which led to various legal battles and negotiations.

The drama first began in August 2020, when Trump signed an executive order banning transactions with parent company ByteDance.

A month later, the Trump administration sought to force the sale of TikTok’s US operations to a US-based company. Key contenders include Microsoft, Oracle and Walmart. However, a US judge temporarily halted Trump’s executive order, allowing TikTok to continue operating while the legal battle unfolds.

Things began to progress more last year after the transition to the Biden administration. After the Senate passed the bill against TikTok, President Joe Biden signed it.

In response, TikTok filed a lawsuit against the US government, challenging the constitutionality of the ban and saying that the app and its American users had their First Amendment rights violated. The company has consistently denied that it poses a security threat, stressing that its data stored in the United States complies with all local laws.

Fast forward to today: Trump has changed his mind since his first term and is trying to work out a 50-50 ownership arrangement between ByteDance and a US company.

There were several contenders, including the People’s Bid to buy TikTok, a consortium organized by Project Liberty founder Frank McCourt. This group is backed by investment firm Guggenheim Securities and law firm Kirkland & Ellis. Supporters include Reddit co-founder Alexis Ohanian, TV personality and investor Kevin O’Leary, World Wide Web inventor Tim Berners-Lee, and senior research scientist David Clark.

Another group, called the Federation of American Investors, is led by Employer.com founder Jesse Tinsley and includes Roblox co-founder David Baszowski, Anchorage Digital co-founder Nathan McCauley, and popular YouTuber MrBeast.

Other candidates include: Amazon, AppLovin, Microsoft, Perplexity AI, Rumble, Walmart, Zop, former Activision CEO Bobby Kotick, and former US Treasury Secretary Steven Mnuchin.

Story updated after publication.