Good news for TikTok fans: after months of uncertainty and ban threats, the app with more than 170 million U.S. users is here to stay in the country. On Thursday, President Donald Trump signed an executive order approving a plan that would transfer control of the app’s U.S. operations to a group of American operations, addressing national security concerns tied to its Chinese parent company, ByteDance.
TikTok has grown into a cultural powerhouse, providing careers for countless creators and a major advertising tool for businesses. But U.S. lawmakers have long feared that ByteDance could be forced to hand over U.S. user data to the Chinese government or spread propaganda. Those concerns led to a 2024 law requiring TikTok to divest its U.S. business or face a nationwide ban.
How The Deal Works
Under the new deal, TikTok’s U.S. operations will be run by a joint-venture company majority-owned and controlled by a group of U.S. investors. Oracle will play a central role, not only providing cloud services but also acting as TikTok’s security watchdog — ensuring user data is stored on American servers and retraining TikTok’s recommendation algorithm with U.S.-approved information.
The consortium of U.S. investors — including Oracle, Silver Lake Management, Andreessen Horowitz, and Susquehanna International — is expected to hold about 80% of the new entity. Meanwhile, ByteDance keeps a stake of less than 20% but loses control of user data, moderation, and algorithms. A seven-member board — six Americans and one ByteDance representative — will oversee the company.
What This Means For Users
For everyday TikTok users, the app will remain available. Creators will still be able to post dance videos, tutorials, and political commentary. Businesses will be able to use the platform for advertising.
However, at some point, Americans may eventually be asked to download a new U.S.-specific version of TikTok, with the app largely offering the same experience. The global TikTok app will continue to operate under ByteDance’s full control outside the U.S.
Trump Hails $14B TikTok Deal
The deal values TikTok’s U.S. business at roughly $14 billion and must be finalized in the next 120 days. President Trump framed the agreement as a win for both national security and American business. “It’s owned by Americans, and very sophisticated Americans,” he said at the signing ceremony, noting that big names like Oracle’s Larry Ellison and Dell CEO Michael Dell are part of the deal.
Vice President JD Vance confirmed the valuation but noted the deal still requires China’s approval. While reports suggest that Chinese President Xi Jinping has signaled support, Beijing’s final stance remains unclear.
ByteDance’s Role Raises Questions
Despite ByteDance’s reduced — but not eliminated role, the company is expected to play a significant role, especially in TikTok’s e-commerce and advertising operations. This has already raised concerns among some lawmakers.
Representative John Moolenaar, chair of the House Select Committee on China, said Congress is expected to review the deal closely in the coming weeks and ensure it fully complies with the divestment law.
The Bigger Picture
After months of extended deadlines, court battles, and tense negotiations, the TikTok deal marks a pivotal moment. Whether this model works smoothly — or sparks new legal and political battles — could shape how the U.S. deals with foreign-owned digital platforms in the future.
