TikTok has confirmed a major deal that allows the app to keep operating in the United States. The agreement ends years of political pressure and legal uncertainty.
The conflict began during Donald Trump’s first term as president. US officials raised concerns about national security and user data. TikTok and ByteDance have consistently denied this claim.
In 2024, the US government passed a law requiring ByteDance to sell TikTok’s US business or face a nationwide ban.
What the Deal Covers
The agreement creates a new company called TikTok USDS Joint Venture LLC. This company will run TikTok’s US operations as a separate business.
Its main role is to protect user data and meet US privacy and security rules.
TikTok’s recommendation algorithm is a key part of the deal. The algorithm has been licensed to the US company and will now be trained only on US user data. Oracle will host and secure the system within its US based cloud environment.
Who Owns TikTok in the US
Three investors each own 15 percent of the US business. These include Oracle, investment firm Silver Lake, and MGX, a technology investor based in Abu Dhabi.
What This Means for TikTok’s Algorithm
TikTok’s algorithm is the engine behind its success. It decides what content users see and keeps people engaged. Competing platforms have tried to copy it, but none have matched its performance.It will operate separately from TikTok’s global system.
Experts say US users may notice changes over time. The app could feel lighter or behave differently. Content suggestions may also shift. However, the long term impact remains uncertain.
