TikTok finalises US deal: Here’s what to know

TikTok has finally secured its future in the United States after closing a long-awaited deal to split its US operations from its Chinese parent company, ByteDance.

The short-video platform confirmed on Thursday that the agreement will allow the app to continue operating for its more than 200 million American users, ending years of political tension between Washington and Beijing.

The move follows a prolonged standoff that began during US President Donald Trump’s first term, when his administration attempted to ban TikTok over national security concerns.

US lawmakers had argued that ByteDance could be compelled by Beijing to hand over American users’ data, claims consistently denied by both TikTok and its parent company.

The pressure intensified under former President Joe Biden, who in 2024 signed a law requiring ByteDance to sell TikTok’s US operations or face an outright ban.

A legal battle followed, and in January 2025, TikTok briefly went dark in the US for about 12 hours before service was restored after Trump, then president-elect, pledged to reverse the ban.

By September, Trump announced he had reached an understanding with China to keep the app running, and by December, binding agreements were signed with American and global investors.

Under the newly finalised deal, TikTok’s US business will now operate as an independent entity known as TikTok USDS Joint Venture LLC.

The company said the new structure is designed to protect US user data and secure its app and algorithm through enhanced privacy and cybersecurity measures.

Reacting to the development, Trump took to social media, saying he was “so happy to have helped in saving TikTok.”

Ownership of TikTok’s US operations will now be shared among American and global investors, with ByteDance retaining a minority 19.9 per cent stake.

Oracle, Silver Lake and Abu Dhabi-based tech investor MGX will each hold 15 per cent, while other investors — including entities linked to tech billionaire Michael Dell and Susquehanna International Group — will control the remaining shares.

Oracle will also play a key role in securing US user data and overseeing changes to TikTok’s powerful content recommendation algorithm.

The new joint venture will be governed by a seven-member board with a majority of American directors and led by Adam Presser, a former WarnerMedia executive.

TikTok’s global chief executive, Shou Zi Chew, will also sit on the board, alongside representatives of Oracle, Silver Lake and MGX.