China’s TikTok announced Thursday that it has finalized an agreement to spin off its American operations into a new joint venture, ending years of uncertainty over the platform’s future in the United States. The deal is expected to keep TikTok accessible to its millions of American users while addressing long‑standing national security concerns.
Under the terms of the agreement, the newly established United States joint venture will operate with strict protective measures, including enhanced data protection protocols, algorithm security safeguards, and tailored content moderation standards. Oracle, the American technology firm, will hold a fifteen percent stake in the venture and serve as the new entity’s designated security partner. UAE‑based investment firm MGX and technology investor Silver Lake will each also hold fifteen percent stakes. ByteDance, the Chinese parent company that originally owned TikTok, will retain a minority stake of 19.9 percent.
President Donald Trump reacted positively to the announcement, posting that he was “so happy to have helped in saving TikTok,” and praising the new ownership group as “Great American Patriots and Investors.” Trump added that he hopes American users will remember his role in securing TikTok’s continued presence in the U.S.
For TikTok’s vast American user base, the most immediate impact will likely be minimal. The platform is expected to continue operating as usual, though gradual changes could occur over time as the American venture retrains the algorithm and configures operations under the new structure.
A central point of negotiation had been the fate of TikTok’s recommendation algorithm, which drives the highly personalized content feeds that have fueled its popularity. Under the new agreement, the American entity will retrain the algorithm using data from U.S. users, with Oracle overseeing the storage and security of that data. This process could result in changes to how content is tailored to users over time, though executives say the goal is to preserve functionality while severing foreign influence.
Despite the new structure, ByteDance will continue to manage certain aspects of the business, such as e‑commerce, advertising, and global marketing. A seven‑member board will oversee the joint venture, featuring executives from ByteDance, Oracle, Silver Lake, MGX, and other investment partners.
Several details remain unresolved, including the financial valuation of TikTok’s U.S. operations and any formal response from the Chinese government.
