TikTok has completed a deal that allows the short-video platform to continue operating in the United States, formally separating its US business from its global operations.
The agreement follows years of tension between Washington and Beijing over national security concerns linked to TikTok’s Chinese owner, ByteDance. US lawmakers have long argued that the company could be compelled by Beijing to share American user data claims repeatedly denied by both TikTok and ByteDance.
Under US legislation passed in 2024, ByteDance was required to sell TikTok’s US operations or face a nationwide ban by January 2025. Enforcement of the law was repeatedly delayed by President Donald Trump, allowing negotiations to continue. TikTok briefly went offline for US users early last year during a legal standoff before service was restored.
The central issue in negotiations was TikTok’s powerful recommendation algorithm, which determines what content users see. Under the new deal, the algorithm has been licensed to TikTok’s American owners and will be retrained using only US user data, which will be stored and secured domestically.
TikTok said a newly created entity, TikTok USDS Joint Venture LLC, will operate the platform independently. The company will be governed by a seven-member board with a majority of American directors. Adam Presser, formerly of WarnerMedia, has been appointed chief executive.
Ownership of the US business is split among several investors. Oracle, Silver Lake and Emirati tech investor MGX each hold 15% stakes, while ByteDance retains 19.9%. Oracle will oversee data security and manage the algorithm within its US cloud infrastructure.
The remaining shares are held by a group of investors including affiliates of Michael Dell and Susquehanna International Group. TikTok’s global chief executive, Shou Zi Chew, will also sit on the board.
Experts say separating the US app and retraining its algorithm could change how TikTok functions for American users. While the platform is expected to comply with US regulations, analysts warn the app’s performance and content recommendations may differ from the global version.
Erizia Rubyjeana
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