TikTok, owned by Chinese company ByteDance, has been at the center of controversy in the US for four years over concerns about user data the Chinese government may have access to.
As a result, US users often found themselves caught in the middle of this tension. Earlier this year, the app experienced a temporary outage in the US that left millions of users in limbo before it was quickly restored. TikTok returned to the App Store and Google Play Store in February.
Several investors competed to buy the app, and after Trump extended the deadline to ban TikTok for the fourth time, the battle was finally over. As of last week, TikTok has officially signed an agreement to divest part of its American entity to a group of American investors.
This comes nearly three months after President Donald Trump signed an executive order authorizing the sale of TikTok’s US operations to an American investor group.
A week ago, President Trump announced that China’s President Xi Jinping had given his approval for a TikTok deal that 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 note 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 business, with ByteDance retaining nearly 20% of the shares. Worthy first reported the news, citing sources who estimate that TikTok US is valued at around $14 billion — a figure also cited by vice president JD Vance.
In September, a report said a “framework” deal was in place between the US and China, with a consortium of investors – including Oracle, Silver Lake and Andreessen Horowitz – overseeing TikTok’s US operations. These investors were expected to hold an 80% stake and the remaining shares would be owned by Chinese shareholders.
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The newly formed ‘TikTok USDS Joint Venture LLC’ will oversee the app’s operations, including data protection, algorithm security, content moderation and software assurance.
Oracle will act as the trusted security partner responsible for auditing and ensuring compliance with the National Security Terms, according to the memo. The company already provides cloud services for TikTok and manages user data in the US. Notably, Oracle previously bid for TikTok in 2020.
A White House official previously said Oracle would replicate and secure a new US version of the algorithm, and US-based TikTok owners could lease the algorithm from ByteDance, which Oracle would then retrain.
ByteDance will not have access to information about US TikTok users or any influence on the US algorithm.
The deal is scheduled to close on January 22, 2026.
What US users need to know
References from Bloomberg indicate that when the deal is completed, the TikTok app will be discontinued in the US and users will have to switch to a new platform. However, the specifics of this platform remain largely unclear, including its features and how it will differ from the original app.
How did we get here?
To fully understand this high-stakes drama, we’ll first review the timeline of TikTok’s tumultuous relationship with the US government, which has led to various legal battles and negotiations.
The drama first began in August 2020, when Trump signed an executive order banning transactions with parent company ByteDance.
A month later, the Trump administration tried to force the sale of TikTok’s US operations to a US-based company. The top contenders were Microsoft, Oracle and Walmart. However, a US judge temporarily blocked Trump’s executive order, allowing TikTok to continue operating while the legal battle unfolded.
Things began to move even further last year after the transition to the Biden administration. After the Senate passed the anti-TikTok bill, President Joe Biden signed it into law.
In response, TikTok sued the US government, challenging the constitutionality of the ban and arguing that the app and its American users are violating their First Amendment rights. The company repeatedly denies that it poses a security threat, claiming that its data stored in the US complies with all local laws.
Fast forward to today: Trump has changed his mind since his first term and is trying to get a 50-50 ownership deal between ByteDance and an American company.
There were several candidates, including The People’s Bid for TikTok a consortium organized by Project Liberty founder Frank McCourt. This group is backed by investment firm Guggenheim Securities and law firm Kirkland & Ellis. Backers include the co-founder of Reddit Alexis OhanianTV personality and investor Kevin O’LearyWorld Wide Web inventor Tim Berners-Lee and senior research scientist David Clark.
Another group, called the American Consortium of Investors, is run by Employer.com founder Jesse Tinsley and includes the co-founder of Roblox David BasukiAnchorage Digital co-founder Nathan McCauley and famous YouTuber MrBeast.
Others in the running were Amazon, AppLovinMicrosoft, Perplexity AI, RumbleWalmart, Zoop, former CEO of Activision Bobby Kotickand former US Treasury Secretary Steven Mnuchin.
Story has been updated after publication.
