TikTokowned by Chinese company ByteDance, has been at the center of controversy in the US for years due to concerns about user data being accessed by the Chinese government.
As a result, US users are often caught in the middle of this tension. Last year, the app suffered a temporary outage in the US that left millions of users confused before it was quickly restored. TikTok returns to the App Store and Google Play Store in February.
Several investors competed to buy the app, and after Trump extended the deadline for the TikTok ban four times, the battle finally ended. As from DecemberTikTok has officially signed a deal to divest part of its US entity to a group of American investors. And now the deal is set to close this week, Semafor reported on Thursday.
This is almost three months after President Donald Trump signed an executive order which approved the sale of TikTok’s US operations to a group of American investors.
A week earlier, President Trump declare that Chinese President Xi Jinping has given his approval to the TikTok deal, which will allow a consortium of US investors to take control of the platform. ByteDance has publicly stated that it will ensure that the platform remains available to American users.
Who owns TikTok in the US?
According to a memo seen by TechCrunch, the investor group includes Oracle, private equity firm Silver Lake, and investment firm MGX. Collectively, they will hold 45% of the US operations, with ByteDance maintaining a nearly 20% stake. Axios was the first to report the news, citing a source who estimated TikTok’s US value at around $14 billion – a figure also cited by Vice President JD Vance.
In September, reports indicated that a “framework” deal. established between the US and China, with a consortium of investors – including Oracle, Silver Lake, and Andreessen Horowitz – overseeing TikTok’s US operations. The investor is expected to hold 80% of the shares, and the remaining shares will go to Chinese shareholders.
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The newly formed “TikTok USDS Joint Venture LLC” will oversee the operation of the app, including data protection, algorithmic security, content moderation, and software assurance.
Oracle will be a trusted security partner, responsible for auditing and ensuring compliance with National Security Provisions, according to the memo. The company has provided cloud services for TikTok and managed user data in the U.S. In particular, Oracle previously made an offer for TikTok in 2020.
White House officials have previously said that Oracle will replicate and secure the new US version of the algorithm, and US-based TikTok owners can rent the algorithm from ByteDance, which Oracle will 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, so hopefully we’ll learn more soon.
What US users need to know
Report of Bloomberg indicates that when the deal is done, the TikTok app will be discontinued in the US and users will have to move to the new platform. However, the specifics of this platform remain unclear, including its features and how it differs from the original app.
How did we get here?
To fully understand this high-stakes drama, we’ll revisit the timeline of TikTok’s tumultuous relationship with the US government, which has led to various legal battles and negotiations.
The first drama begins in August 2020when Trump signed an executive order to ban transactions with parent company ByteDance.
A month later, the Trump administration sought to force the sale of TikTok’s US operations to a US-based company. Major contenders include Microsoft, Oracle, and Walmart. However, US judges are temporary blocked Trump’s executive order allows TikTok to continue operating while the legal battle unfolds.
Things started moving forward last year after the transition to the Biden administration. After the Senate sign up for a bill on TikTok, President Joe Biden enter.
As an answer, TikTok is suing the US governmentchallenged the constitutionality of the ban and argued that the app and its American users had their First Amendment rights violated. The company has consistently denied that there is a security threat, insisting that data stored in the US complies with all local laws.
Fast forward to 2024: Trump had a change of heart since the first season and tried to get a 50-50 ownership arrangement between ByteDance and the US company.
There are several contenders, including The People’s Deal for TikTok a consortium organized by the founders of Project Liberty Frank McCourt. The group has backing from investment firm Guggenheim Securities and law firm Kirkland & Ellis. Supporters 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 Consortium of American Investors, is led by Employer.com the founder Jesse Tinsley and includes the co-founder of Roblox David BaszuckiCo-founder of Anchorage Digital Nathan McCauley, and famous YouTuber Mr. Beast.
More on running included Amazon, AppLovin, Microsoft, AI confusion, RumbleWalmart, Zoop, former CEO of Activision Bobby Kotikand former US Treasury Secretary Steven Mnuchin.
The story has been updated after publication.