TikTok Secures Deal To Continue Operations In US

TikTok has completed a deal that allows the short-video platform to continue operating in the United States, formally separating its US business from its global operations.

The agreement came after years of tension between Washington and Beijing over national security concerns tied to TikTok’s Chinese parent company, ByteDance. US lawmakers have repeatedly argued that ByteDance could be compelled by the Chinese government to share American user data—claims consistently denied by both TikTok and ByteDance.

Under legislation passed in 2024, ByteDance was required to divest TikTok’s US operations or face a nationwide ban by January 2025. Enforcement of the law was repeatedly delayed by President Donald Trump, creating room for prolonged negotiations.

During the legal standoff, TikTok briefly went offline for US users early last year before services were restored.

A major sticking point in the negotiations was TikTok’s powerful recommendation algorithm, which determines what content users see on the platform.

Under the new deal, the algorithm has been licensed to TikTok’s American owners and will be retrained exclusively using US user data, which will be stored and secured within the United States.

TikTok said the platform will now be operated independently by a newly created entity, TikTok USDS Joint Venture LLC.

The company will be governed by a seven-member board with a majority of American directors. Adam Presser, a former WarnerMedia executive, has been appointed as chief executive.

Ownership of the US business is divided among several investors. Oracle, Silver Lake and Emirati technology investor MGX, each holding 15 per cent stakes, while ByteDance retains a 19.9 per cent share. Oracle will oversee data security and manage the algorithm through its US-based cloud infrastructure.

The remaining shares are held by a group of investors, including affiliates of Michael Dell and Susquehanna International Group. TikTok’s global chief executive, Shou Zi Chew, will also serve on the board.

Analysts said the separation of TikTok’s US operations and the retraining of its algorithm could significantly alter how the app functions for American users. While the platform is expected to comply fully with US regulations, experts warned that content recommendations and overall performance may differ from TikTok’s global version.