TikTok, which is managed by the Chinese firm ByteDance, has found itself embroiled in controversy in the U.S. for the past four years owing to fears regarding user data possibly being accessed by the Chinese authorities.
Consequently, users in the U.S. have frequently felt trapped within this conflict. Earlier this year, the app faced a brief outage in the U.S. that left millions of users on edge before it was swiftly restored. In February, TikTok made its return to both the App Store and Google Play Store.
Several investors vied to acquire the app, and with Trump having extended the TikTok ban deadline for the fourth time, the competition has finally reached its conclusion. As of last week, TikTok has officially sealed a deal to divest a segment of its U.S. operations to a coalition of American investors.
This agreement comes almost three months after President Donald Trump enacted an executive order approving the sale of TikTok’s U.S. operations to a group of American investors.
Just a week earlier, President Trump revealed that President Xi Jinping of China had granted his endorsement of a TikTok deal, enabling a consortium of U.S. investors to manage the platform. ByteDance publicly assured it would maintain the platform’s accessibility for American users.
Who possesses TikTok in the U.S.?

As per a memo obtained by TechCrunch, the investor group includes Oracle, the private equity firm Silver Lake, and the investment firm MGX. Together, they will possess 45% of the U.S. operation, while ByteDance will retain approximately a 20% ownership. Axios was the first to report the information, citing sources estimating TikTok U.S. to be valued at around $14 billion — a valuation also noted by Vice President JD Vance.
In September, reports indicated that a “framework” deal had been established between the U.S. and China, involving a consortium of investors — including Oracle, Silver Lake, and Andreessen Horowitz — overseeing TikTok’s U.S. operations. These investors were anticipated to hold an 80% stake, while the remaining shares would be owned by Chinese stakeholders.
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The newly established “TikTok USDS Joint Venture LLC” will manage the app’s operations, which include data security, algorithm integrity, content oversight, and software reliability.
According to the memo, Oracle will act as the designated security partner, charged with auditing and ensuring adherence to National Security Terms. The company already supplies cloud solutions for TikTok and handles user data within the U.S. Notably, Oracle had previously attempted to acquire TikTok in 2020.
A White House official had earlier stated that Oracle would duplicate and secure a new U.S. version of the algorithm, allowing U.S.-based TikTok proprietors to lease the algorithm from ByteDance, which Oracle will then retrain.
ByteDance will not have access to data regarding TikTok’s U.S. users or any control over the U.S. algorithm.
The transaction is set to be finalized by January 22, 2026.
What U.S. users ought to know
Reports from Bloomberg suggest that once the agreement is finalized, the TikTok app will be phased out in the U.S., and users will need to migrate to a different platform. Nonetheless, the details of this platform are predominantly uncertain, encompassing its features and how it will diverge from the original app.
How did we arrive at this point?

To grasp the full scope of this high-stakes saga, we must first revisit the timeline of TikTok’s contentious relationship with the U.S. government, which led to numerous legal battles and negotiations.
The saga initially unfolded in August 2020, when Trump issued an executive order to restrict transactions with the parent company ByteDance.
A month later, Trump’s administration endeavored to compel a sale of TikTok’s U.S. operations to an American company. The primary contenders were Microsoft, Oracle, and Walmart. However, a U.S. judge temporarily halted Trump’s executive order, enabling TikTok to keep operating as the legal proceedings continued.
Progress resumed last year with the transition to the Biden administration. Following the Senate’s passage of a bill against TikTok, President Joe Biden signed it.
In retaliation, TikTok filed a lawsuit against the U.S. government, contesting the legality of the ban and claiming that the app and its American users were having their First Amendment rights breached. The company has consistently refuted the notion that it poses a security risk, maintaining that its data stored in the U.S. adheres to all local regulations.
Fast-forward to now: Trump has shifted his stance since his initial term and is pursuing a 50-50 ownership split between ByteDance and a U.S. company.
Various contenders have emerged, including The People’s Bid for TikTok, a consortium led by Project Liberty founder Frank McCourt. This group is backed by investment firm Guggenheim Securities and the law firm Kirkland & Ellis. Supporters encompass Reddit co-founder Alexis Ohanian, TV figure and investor Kevin O’Leary, World Wide Web inventor Tim Berners-Lee, and senior research scientist David Clark.

Another competing group, the American Investor Consortium, is spearheaded by Employer.com founder Jesse Tinsley and includes Roblox co-founder David Baszucki, Anchorage Digital co-founder Nathan McCauley, and renowned YouTuber MrBeast.
Additional contenders have included Amazon, AppLovin, Microsoft, Perplexity AI, Rumble, Walmart, Zoop, former Activision CEO Bobby Kotick, and former U.S. Treasury Secretary Steven Mnuchin.
The narrative has been updated following publication.
















