What's happened
On January 23, 2026, TikTok finalized a deal creating a majority American-owned joint venture to operate its US business, avoiding a ban mandated by a 2024 law. Investors including Oracle, Silver Lake, and Emirati firm MGX hold over 80%, while ByteDance retains 19.9%. The US algorithm will be retrained on American data, with data stored locally under strict safeguards.
What's behind the headline?
National Security and Data Control
The deal represents a strategic compromise to address US national security concerns by shifting majority ownership and operational control to American investors. Oracle, Silver Lake, and MGX each hold 15%, collectively controlling over 80% of the new entity, while ByteDance retains a minority stake below the 20% legal threshold.
Algorithm Retraining and Content Moderation
A critical aspect is the licensing and retraining of TikTok's recommendation algorithm on US user data. This move aims to sever operational ties with ByteDance, complying with the law's prohibition on cooperation regarding content recommendation algorithms. However, ByteDance's continued licensing role raises questions about the practical separation and potential influence.
Political and Economic Implications
The involvement of figures linked to former President Trump, such as Oracle's Larry Ellison, and Emirati investors, reflects the geopolitical complexity underpinning the deal. Trump's public endorsement and gratitude toward Chinese President Xi Jinping underscore the diplomatic negotiations behind the scenes.
User Experience and Market Impact
While US users will continue using the same app, the retrained algorithm will likely produce a more US-centric content feed, potentially altering user engagement and cultural dynamics on the platform. Businesses reliant on TikTok's global reach may face adjustments, though interoperability between US and global content is promised.
Forecast
This joint venture will likely stabilize TikTok's US presence, but ongoing scrutiny over data privacy and content moderation will persist. The success of the US-centric algorithm in maintaining user engagement without alienating audiences will be pivotal. The deal sets a precedent for handling foreign-owned tech platforms amid rising geopolitical tensions.
What the papers say
The Guardian's Sam Levin details the ownership structure and political backdrop, noting the majority American ownership and ByteDance's minority stake, emphasizing the legal and diplomatic hurdles overcome. Business Insider UK's Dan Whateley highlights TikTok CEO Shou Chew's internal memo celebrating the deal and the operational split between ByteDance and the new US entity. Al Jazeera's Shola Lawal provides historical context on the legislative and executive actions leading to the deal, including Trump's role in delaying the ban. France 24 and The Times of Israel focus on the national security safeguards, data storage in Oracle's US cloud, and the retraining of the algorithm, underscoring the technical measures to protect US user data. The New York Times' Emmett Lindner and David McCabe explore the broader geopolitical implications and the legal odyssey TikTok endured, framing the deal as a resolution to years of uncertainty. These perspectives collectively illustrate the multifaceted nature of the agreement, from legal, political, technical, and business angles, offering readers a comprehensive understanding of TikTok's US future.
How we got here
Concerns over TikTok's Chinese ownership and data security led the US Congress in 2024 to pass a law requiring ByteDance to divest TikTok's US operations or face a ban. The Supreme Court upheld this law in 2025. Successive executive orders delayed enforcement, allowing negotiations that culminated in this joint venture agreement to address national security and data privacy concerns.
Go deeper
- How will the new TikTok US algorithm affect user experience?
- What role does ByteDance retain in the new TikTok US entity?
- What national security measures are included in the joint venture?
Common question
-
What Does TikTok’s US Deal Mean for Users?
TikTok’s recent US deal marks a major shift in how the app operates in America. With new ownership structures and data safeguards, many users are wondering what this means for their experience and security. Below, we answer the most common questions about the deal, its impact on data privacy, and what changes you might see in the app’s future.
-
What’s the Big Picture? Key Stories Shaping Today’s News
Today’s headlines reveal a world in flux, from rising tensions in the Middle East to major shifts in global tech and protests over immigration. Curious about how these stories connect and what they mean for the future? Here’s a breakdown of the biggest stories and what to watch for next.
-
TikTok’s US Deal Explained: What Does It Mean for Users and Security?
On January 23, 2026, TikTok finalized a major deal to operate in the US under American ownership. This move comes after years of legal battles and security concerns, raising questions about what it means for TikTok users, data security, and the app’s future in the US. Below, we answer the most common questions about this landmark agreement and what it could mean for you.
-
What Are the Biggest News Stories Today?
Stay updated with the latest headlines shaping the world today. From major tech deals and international diplomacy to protests and sports legends, these stories are worth your attention. Curious about how these events connect or what they mean for your daily life? Keep reading for clear, concise answers to your top questions.
More on these topics
-
TikTok/Douyin is a Chinese video-sharing social networking service owned by ByteDance, a Beijing-based Internet technology company founded in 2012 by Zhang Yiming.
-
Oracle Corporation is an American multinational computer technology corporation headquartered in Redwood Shores, California. The company sells database software and technology, cloud engineered systems, and enterprise software products—particularly its
-
ByteDance Ltd. is a Chinese multinational internet technology company headquartered in Beijing. It was founded by Zhang Yiming in 2012. ByteDance is reportedly worth over US$100 billion as of May 2020.
ByteDance's core product, Toutiao, is a content platf
-
Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
-
Joseph Robinette Biden Jr. is an American politician who is the 46th and current president of the United States. A member of the Democratic Party, he served as the 47th vice president from 2009 to 2017 and represented Delaware in the United States Senate
-
Lawrence Joseph Ellison is an American business magnate, investor, and philanthropist who is a co-founder and the executive chairman and chief technology officer of Oracle Corporation.
-
Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.
-
Michael Saul Dell is an American billionaire businessman and philanthropist. He is the founder, chairman and CEO of Dell Technologies, one of the world's largest technology infrastructure companies.
-
Shou Zi Chew is a Singaporean businessman and entrepreneur who has served as chief executive officer of TikTok since 2021.