5 Things to Know About the TikTok Deal: What It Means for Users, Security, and the Future of the App

In a dramatic turn of events that will shape the digital landscape for years to come, TikTok has finalized a landmark deal to restructure its U.S. operations and avoid a nationwide ban. After years of political and legal wrangling, the popular short‑form video platform — used by hundreds of millions of Americans — is entering a new chapter that blends national security concerns, corporate negotiations, and global tech strategy. Here are the five most important things to understand about the deal, what it means for the platform’s future, and why this matters far beyond Silicon Valley.


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1. TikTok’s U.S. Operations Are Now Majority American‑Owned

One of the biggest changes in the TikTok deal is the formation of a new U.S. entity, TikTok USDS Joint Venture LLC, which is majority owned and controlled by American and global investors. Leading the charge are tech giant Oracle, private equity firm Silver Lake, and Abu Dhabi–based investment group MGX — each holding roughly 15% of the joint venture. Together, these investors own 80.1% of the new entity that will run TikTok’s U.S. business. In contrast, China’s ByteDance, TikTok’s original parent company, retains a 19.9% stake — deliberately kept below the 20% threshold required by U.S. law to ensure it’s no longer considered a “foreign adversary‑controlled” company.

This ownership structure was designed specifically to satisfy U.S. lawmakers’ demands that TikTok be divested from Chinese control — a key condition to avert a nationwide ban that had loomed for more than a year.


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2. U.S. User Data and Algorithms Will Be Securely Managed

National security concerns have been at the heart of the U.S. government’s push to force TikTok to divest its operations. Critics and policymakers have argued that China’s ByteDance could potentially access sensitive U.S. user data or influence what Americans see on the platform — claims TikTok has consistently denied.

To address those issues head‑on, U.S. user data will now be stored securely within Oracle’s cloud infrastructure, and the joint venture will oversee stringent data protection, algorithm security, and content moderation policies. The recommendation algorithm — the core engine that determines what content users see — will be retrained and tested using U.S. data under the supervision of the new entity, ensuring it aligns with national security expectations.

By isolating data storage and sensitive operations within U.S. jurisdiction, the deal attempts to balance security with functionality, allowing TikTok to remain operational while mitigating the risk of foreign interference.


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3. The App Will Continue to Operate for Hundreds of Millions of American Users

One of the most immediate impacts of the deal is continuity for TikTok users in the United States. The platform boasts an audience of more than 200 million U.S. users, including creators, small businesses, influencers, and casual watchers alike.

Without the agreement, many of these users could have lost access to the app entirely once enforcement of a divest‑or‑ban law passed in 2024 took full effect. Instead, the new joint venture keeps the app live in the U.S., with the same familiar interface and features — though behind the scenes, ownership, security, and data practices are undergoing significant changes.

For content creators and advertisers whose brands rely on TikTok’s reach, this continuity provides a crucial lifeline. It ensures that U.S.‑based audiences can continue creating, engaging, and monetizing content without interruption or forced migration to a competitor platform.


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4. Leadership and Governance Have a Strong U.S. Representation

The leadership of the new U.S.‑focused TikTok entity reflects the shift in control and strategic focus. Adam Presser, previously head of operations and trust and safety at TikTok, has been named CEO of the U.S. venture, bringing continuity from inside the company while aligning with the new ownership structure. Additionally, the joint venture’s seven‑member board includes a majority of U.S. directors, blending international expertise with American oversight.

Even TikTok’s global CEO, Shou Chew, has a place on the board — ensuring that core corporate knowledge and long‑term vision continue to influence the U.S. side of the business. The governance structure aims to balance stability for users with accountability to U.S. security expectations.


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5. The Deal Ends Years of Political and Legal Battle — But Tensions Remain

Underlying the TikTok deal is a longer, more complex story of technology, government, and geopolitics. The U.S. first signaled serious concerns about TikTok’s Chinese ownership as early as 2020 — culminating in a federal law passed in 2024 that mandated the divestment of U.S. operations or a ban. That law, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, framed TikTok as a national security risk that had to be addressed.

The negotiations and legal push‑and‑pull that followed involved court challenges, presidential executive orders, and geopolitical diplomacy between U.S. and Chinese officials. The finalization of this deal marks a resolution to that multiyear saga, but experts note that questions remain about the long‑term implications, particularly around data governance, algorithm influence, and how much control ByteDance really relinquishes in practice.

Critics argue that keeping even a minority Chinese stake or licensing core technology could undermine the spirit — if not the letter — of U.S. law. Supporters, on the other hand, contend that it’s a balanced compromise that prevents disruption for users while addressing security concerns.


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What Comes Next?

With the TikTok deal now finalized, the company can operate in the U.S. indefinitely under its new structure. The next steps involve implementing the security measures, training the algorithm locally, and monitoring how the joint venture performs under regulatory scrutiny.

For everyday users, content creators, and digital advertisers, this means continuity, but with a platform that now operates under heightened scrutiny and a fundamentally different ownership landscape.

The TikTok deal stands as a major milestone in the intersection of technology and national policy — one that could influence how social platforms are regulated, owned, and secured in the digital age.