Here's what you need to know about TikTok's US deal

TikTok, owned by Chinese company ByteDance, has been at the center of controversy in the US for four years over concerns about the Chinese government's potential access to user data.

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

Many investors were competing to buy the app, and after Trump extended the deadline to ban TikTok for a fourth time, the battle finally ended. Last week, TikTok officially signed a deal to sell part of its US entity to a group of US investors.

This came nearly three months after President Donald Trump signed an executive order approving the sale of TikTok's U.S. operations to an American group of investors.

A week earlier, President Trump announced that Chinese President Xi Jinping had agreed to a TikTok deal that would allow a consortium of American investors to control the platform. ByteDance has publicly stated that it will make the platform available to American users.

Who owns TikTok in the US?

According to a note shared by TechCrunch, the investor group consists of Oracle, private equity firm Silver Lake and investment firm MGX. Collectively, they will own 45% of the U.S. business, with ByteDance retaining a nearly 20% stake. Axles first announced the news, citing sources who estimate that TikTok US is valued at around $14 billion – a figure also mentioned by Vice President JD Vance.

In September, a report indicated that a “framework” agreement had been struck between the United States and China with a consortium of investors — including Oracle, Silver Lake and Andreessen Horowitz — overseeing TikTok's U.S. operations. These investors were expected to own 80% of the shares, with the remaining shares held by Chinese stakeholders.

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

According to the memo, Oracle will be a trusted security partner responsible for auditing and ensuring compliance with national security conditions. The company already provides cloud services for TikTok and manages user data in the US. It's worth noting that Oracle already made a bid for TikTok back in 2020.

A White House official previously said Oracle would replicate and secure the new U.S. version of the algorithm, and TikTok's U.S.-based owners would be able to lease the algorithm from ByteDance, which Oracle would then train.

ByteDance will not have access to information about TikTok's American users or any influence over the American algorithm.

The transaction is scheduled to be completed on January 22, 2026.

What US users need to know

Reports With Bloomberg indicate that once the deal is finalized, the TikTok app will be discontinued in the US and users will have to switch to the new platform. However, the specifics of this platform remain largely unclear, including its features and how it will differ from the original app.

How did we get here?

To fully understand this high-stakes drama, let's first examine the timeline of TikTok's tumultuous relationship with the U.S. government, which has led to various legal battles and negotiations.

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

A month later, the Trump administration tried to force the sale of TikTok's U.S. operations to a U.S. company. Top contenders included Microsoft, Oracle and Walmart. However, a US judge temporarily blocked Trump's order, allowing TikTok to continue operating until the legal battle ends.

Things started to pick up even more last year with the transition to the Biden administration. After the Senate passed the anti-TikTok bill, President Joe Biden signed it into law.

In response, TikTok sued the U.S. government, challenging the constitutionality of the ban and arguing that the app and its American users violate First Amendment rights. The company has consistently denied it poses a security risk, insisting that its data stored in the US complies with all local regulations.

Let's fast forward to today: Trump since his first term, he has changed his mind and is trying to reach a 50-50 ownership agreement between ByteDance and the US company.

There were several contenders, including: People's offer on TikTok a consortium organized by Project Liberty founder Frank McCourt. This group is backed by the investment firm Guggenheim Securities and the law firm Kirkland & Ellis. Supporters include the co-founder of Reddit Alexis OhanianTV personality and investor Kevin O'Learyinventor of the World Wide Web Tim Berners-Lee and senior scientist David Clark.

It is led by another group called the American Investor Consortium Employer.com founder Jesse Tinsley and co-founder of Roblox Dawid BaszuckiAnchorage Digital co-founder Nathan McCauley and famous YouTuber MrBeast.

Other entrants included Amazon, AppLovinMicrosoft, AI embarrassment, BangWalmart, Zoop, former CEO of Activision Bobby Kotikand former US Treasury Secretary Steven Mnuchin.

The story was updated after publication.