TikTok finalizes U.S. deal to keep operating under new ownership

TikTok has finalized a deal to keep operating in the United States under new ownership led by Oracle, Silver Lake, and the Emirati investment firm MGX. The arrangement, announced January 23, resolves years of uncertainty about the platform’s future following a 2024 law requiring ByteDance, TikTok’s China-based parent company, to divest its stake or face a ban. President Donald Trump signed an executive order in January 2025 that extended TikTok’s operating deadline while his administration negotiated the terms.

The resolution matters to millions of American users and creators who depend on the platform. It also raises questions about whether the new ownership structure adequately addresses the security concerns that prompted Congress to require ByteDance’s divestment.

What changes for users

Americans using TikTok can continue with the same app, but their experience will shift. The algorithm that powers the platform’s content recommendation system—described as the “secret sauce” behind its addictive feed—will be licensed from ByteDance and then retrained on U.S. user data. That retraining process will almost certainly reshape what appears in individual feeds.

“The trends and what dominates feeds will feel distinctly American,” said Kelsey Chickering, an analyst at Forrester. “Global content will still appear, but its ranking will change.”

The practical implications for users remain unclear. TikTok’s press release claims U.S. creators will still be discoverable worldwide and that businesses will maintain global reach, but exactly how the U.S. and ByteDance systems will interoperate to preserve a global experience is undocumented.

Any noticeable change to a social media platform’s service carries risk of alienating its audience, according to Jasmine Enberg, an analyst at eMarketer.

TikTok’s updated terms of service introduce concrete changes for American users. The platform will offer an “Under 13 Experience” with restricted features for young users. All AI-generated content posted to the platform must be labeled as created by artificial intelligence. Users retain ownership of their content, but TikTok will be able to use that content to operate or improve the platform, subject to user settings.

The security questions that linger

The deal does not fully address the security concerns that prompted Congress to mandate ByteDance’s divestment in the first place. Lawmakers previously expressed concern that the Chinese government could use TikTok’s algorithm to push propaganda or gather data on individual users.

The 2024 law passed by Congress explicitly prohibits “any cooperation with respect to the operation of a content recommendation algorithm” between ByteDance and the new U.S. ownership group. Yet under the new deal structure, ByteDance will continue to license the algorithm to the U.S. entity. How that continued involvement will be reconciled with the law’s prohibition remains unclear.

New ownership and political ties

Oracle co-founder Larry Ellison, 81, has become a key figure in TikTok’s American future. While Ellison no longer serves as Oracle’s CEO, he remains a top executive at the company and oversees an estimated personal fortune of $225 billion. He previously helped finance Skydance’s $8 billion merger with Paramount.

Ellison’s involvement with the Trump administration dates to the president’s first term, when he played a role in prior efforts to force ByteDance to sell TikTok.

Vice President JD Vance was tasked with leading White House efforts to find a U.S. buyer and participated in negotiations. In September 2025, when U.S. officials including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese counterparts in Madrid, Vance and Trump joined some negotiating sessions by phone and pressed China to finalize a deal by the end of the trip. China agreed.

These administration ties have sparked questions about the deal’s impact on content moderation and editorial decisions.

“If moderation happens to tilt toward one political viewpoint or fails to curb misinformation, TikTok risks a user exodus to rival platforms,” Chickering said, pointing to the upheaval that occurred when Twitter transformed into X and alienated users and advertisers.

How creators and businesses are responding

Skip Chapman, co-owner of KAFX Body in New Jersey, a natural deodorant company, launched his business on TikTok Shop in April 2023. He said he is relieved to stop worrying about a potential ban that has loomed over his business for more than a year. Eighty percent of his sales come through TikTok Shop, and the platform remains his primary way to reach new customers.

“I’m hoping that the new owners continue to prioritize it and even more so add more features, more benefits, more opportunities for my business,” Chapman said. He expressed caution about whether the new ownership will maintain that focus.

Vanessa Barreat, owner of La Vecindad Mexican restaurant in Las Vegas, has grown her TikTok page to over 100,000 followers. The visibility has helped her attract customers, particularly tourists, while reducing marketing expenses.

Barreat said she is taking a “wait-and-see mindset” about the deal. “Anytime there’s a major shift or deal, there’s uncertainty, but I’m not operating from fear,” she said. “TikTok has empowered so many voices that historically didn’t have access to platforms like this, and that impact doesn’t disappear overnight.”