Here’s what you need to know about the US TikTok deal

TikTokowned by Chinese company ByteDance, has been at the center of controversy in the United States for four years now due to concerns over potential access to user data by the Chinese government.

As a result, American users often found themselves caught in the middle of this tension. Earlier this year, the app experienced a temporary outage in the United States that left millions of users hanging before it was quickly restored. TikTok is back on the App Store and Google Play Store in February.

A number of investors competed to buy the app, and after Trump extended the TikTok ban deadline for the fourth time, the battle is finally over. Of the last weekTikTok has officially signed an agreement to sell part of its American entity to a group of American investors.

This comes nearly three months after President Donald Trump. signed a decree which approves the sale of TikTok’s US operations to a group of US investors.

A week earlier, President Trump announcement that Chinese President Xi Jinping had given approval to a deal with TikTok, which would allow a consortium of American investors to control the platform. ByteDance has publicly stated that it will ensure that the platform remains available to US users.

Who owns TikTok in the US?

According to a memo seen by TechCrunch, the investor group consists of Oracle, private equity firm Silver Lake and investment firm MGX. Collectively, they will own 45% of the US operations, with ByteDance retaining almost 20% of the share. Axios first reported the news, citing sources who estimate that TikTok US is valued at around $14 billion – a figure also mentioned by Vice President JD Vance.

In September, a report indicated that a “framework” agreement was created between the United States and China, with a consortium of investors – including Oracle, Silver Lake and Andreessen Horowitz – overseeing TikTok’s US operations. These investors were to hold an 80% stake, and the remaining shares would be owned by Chinese stakeholders.

The new “TikTok USDS Joint Venture LLC” will oversee the app’s operations, including data protection, algorithm security, content moderation and software assurance.

Oracle will serve as a trusted security partner, responsible for auditing and ensuring compliance with national security requirements, according to the memo. The company already provides cloud services for TikTok and manages user data in the United States. Notably, Oracle had already made an offer for TikTok in 2020.

A White House official previously said Oracle would replicate and secure a new U.S. version of the algorithm, and that TikTok’s U.S. owners could lease the algorithm to ByteDance, which Oracle would then recycle.

ByteDance will not have access to information about US users of TikTok or any influence on the US algorithm.

The transaction is expected to close on January 22, 2026.

What users in the United States should know

Reports Since Bloomberg indicate that when the deal is finalized, the TikTok app will be discontinued in the United States and users will have to move to a new platform. However, the specifics of this platform remain largely unclear, including its functionality and how it will differ from the original app.

How did we get here?

To fully understand this high-stakes drama, we’ll first take a look back at the timeline of TikTok’s tumultuous relationship with the US government, which resulted in various legal battles and negotiations.

The drama began in August 2020when Trump signed an executive order banning transactions with parent company ByteDance.

A month later, the Trump administration sought to force the sale of TikTok’s U.S. operations to a U.S.-based company. The main competitors were Microsoft, Oracle and Walmart. However, an American judge has provisionally blocked Trump’s executive order, allowing TikTok to continue operating while the legal battle played out.

Things started to move forward even more last year after the transition to the Biden administration. After the Senate passed the bill against TikTok, President Joe Biden I signed it.

In response, TikTok sued the US governmentchallenging the constitutionality of the ban and arguing that the app and its American users were having their First Amendment rights violated. The company has always denied that it poses a security threat, saying its data stored in the United States complies with all local laws.

Fast forward to today: Asset has changed its mind since its first term and is trying to reach a 50-50 ownership deal between ByteDance and a US company.

There have been several contenders, including The people’s candidacy for TikTok a consortium organized by the founder of Project Liberty Frank McCourt. This group benefits from the support of the investment company Guggenheim Securities and the law firm Kirkland & Ellis. Supporters include Reddit co-founder Alexis Ohaniantelevision personality and investor Kevin O’LearyWorld Wide Web inventor Tim Berners-Lee and principal investigator David Clark.

Another group, called the American Investor Consortium, is led by Employer.com founder Jesse Tinsley and includes the co-founder of Roblox David BaszuckiNathan McCauley, co-founder of Anchorage Digital and famous YouTuber MisterBeast.

Others in the running included Amazon, AppLovin, Microsoft, Perplexity AI, ScoldWalmart, Zoop, former Activision CEO Bobby Kotickand former U.S. Treasury Secretary Steven Mnuchin.

The story was updated after publication.