TikTok in the USA: the story of complex negotiations that turned into reality

The saga of TikTok in the United States resembles a thriller full of twists and turns. From the beginning, this app, owned by Chinese ByteDance, has sparked controversy over user data security. The dispute history dates back to August 2020, when then-President Trump signed an executive order banning transactions with TikTok’s parent company. Since then, the app has faced numerous threats on the US political stage.

From crisis to new agreements — a timeline of dramatic events

A breakthrough occurred in February this year when TikTok returned to the App Store and Google Play Store after a brief unavailability. In the following months, the administration worked on negotiating a new ownership split of the platform. After President Trump extended the deadline for the transaction, negotiations accelerated. Last week, TikTok officially finalized an agreement — nearly three months after the presidential decree approving the sale of part of its US operations.

Who took control? Understanding the new ownership structure

The new reality is represented by a consortium composed of three main players: Oracle, private investment firm Silver Lake, and the Emirati investment company MGX. According to the arrangements, this group will hold 45% of the shares in TikTok’s US branch, while ByteDance will retain about 20%. The significance of this ownership structure should not be underestimated — the platform currently known to millions of Americans will now be co-controlled by foreign investors.

The valuation of TikTok in the US has been set at approximately 14 billion dollars. This remains a sensitive issue for many observers, considering Trump’s original ambitions for a complete sale of operations.

Newly created entity: TikTok USDS Joint Venture LLC

To structure this change, a new business entity called TikTok USDS Joint Venture LLC was established. It will be responsible for key aspects of the platform’s operation:

• User data management
• Algorithm security
• Content moderation
• Software quality assurance

Oracle has secured the position of trusted security partner and will conduct compliance audits with national security requirements. The tech giant has previously provided cloud services for TikTok and managed user data in the US — this role will be a natural extension of its existing responsibilities.

Security guarantees: what changes for user data

One of the most significant changes concerns access to data and algorithms. According to the new agreement, ByteDance will not have access to TikTok user information in the United States nor influence the US algorithm. Oracle will be responsible for copying and securing the new American version of the algorithm. The operational theory is that American owners will be able to lease the original algorithm from ByteDance, which Oracle will then process and improve.

This clause addresses longstanding US government concerns about potential Chinese authorities’ access to sensitive American data. ByteDance has repeatedly denied these allegations, asserting that its US operations are fully compliant with local laws.

Finalization and next steps: what awaits users

The planned finalization date on January 22, 2026 will mark a turning point. After this date, reports indicate that TikTok will need to be withdrawn from app stores in the US. Users will have to switch to the new platform — details about its features and differences from the current app remain largely unclear.

Negotiation turbulence: several candidates, one winner

The path to this agreement was not straightforward. Many consortia and companies attempted to acquire TikTok operations:

The People’s Bid for TikTok — organized by Frank McCourt, founder of Project Liberty, supported by Guggenheim Securities and law firm Kirkland & Ellis. Supporters included Reddit co-founder Alexis Ohanian, presenter and investor Kevin O’Leary, World Wide Web inventor Tim Berners-Lee, and scientist David Clark.

American Investor Consortium — led by Jesse Tinsley, founder of Employer.com, including Roblox co-founder David Baszucki, Anchorage Digital co-founder Nathan McCauley, and YouTuber MrBeast.

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

Political shift: Trump changes course

It is noteworthy that Trump’s stance evolved from his first term. Instead of a total ban or full sale to foreign firms, the current administration aims for a hybrid model involving both Americans and ByteDance. This compromise demonstrates the complexity of negotiations in the realm of national security and economic interests.

Previous legal battles were crucial — TikTok sued the US government, challenging the constitutionality of the ban and citing First Amendment rights. An American court temporarily blocked Trump’s initial executive order, allowing the app to continue operating amid ongoing legal disputes.

After power shifted to the Biden administration, the Senate passed a law against TikTok, signed by President Joe Biden. However, ultimately, the current Trump administration found a different path — negotiations instead of a total ban.

In conclusion

The TikTok deal in the US represents a pragmatic solution to the clash between national security concerns and economic realities and user rights. The change initiated in August, when Trump first took action against ByteDance, set off this chain of events, which has now reached its conclusion. The ownership structure with Oracle as a safeguard, ByteDance retaining a minority stake, and an investor consortium taking control, is a compromise among all parties involved. For millions of TikTok users in the US, many questions remain — especially regarding how the transition to the new platform will look and whether the user experience will change.