The US and China have officially finalised a deal transferring TikTok’s American operations to a consortium led by Oracle and Silver Lake, a White House official confirmed. The agreement establishes a new US-based entity in which ByteDance will retain just under 20% ownership, while a seven-member board, with a majority of American directors, will oversee key areas including data protection, content moderation, and algorithm security. This move is expected to ensure that TikTok’s US operations comply with regulatory demands while maintaining the platform’s functionality for users and advertisers.
The spin-off was completed ahead of the January 23 deadline, set under the 120-day enforcement pause in former President Trump’s September executive order. The consortium also includes MGX, an Abu Dhabi-based AI investment firm, alongside investors such as Susquehanna, Dragoneer, and Michael Dell’s family office, DFO. This structure aims to create a US-controlled operation while allowing ByteDance to retain a minority stake.
TikTok has also confirmed its new leadership team for the US entity. Adam Presser, formerly head of operations and trust and safety, has been appointed CEO, while Will Farrell, who led the platform’s privacy and security work, will serve as Chief Security Officer. These appointments aim to ensure continuity in managing operational, safety, and regulatory matters for the American business.
This development marks the end of a regulatory saga spanning more than five years, across multiple presidential administrations, executive orders, and court decisions. The Biden administration passed a law in 2024 requiring ByteDance to divest TikTok’s US operations or face a potential ban. This law was upheld by the Supreme Court in 2025, after which TikTok temporarily went offline for two days before an executive order allowed the platform to continue operating while negotiations proceeded.
The current framework, agreed upon by both governments, establishes a US-based entity with majority American ownership. ByteDance retains a minority stake, ensuring the company still has some involvement in the US business while compliance and oversight remain firmly under American control. Vice President JD Vance previously indicated the deal values TikTok’s US operations at around $14 billion, though the exact amount ByteDance will receive has not been publicly disclosed.
The recommendation algorithm, a central point of concern throughout the negotiations, remains under scrutiny. The September executive order required oversight of TikTok’s algorithms, including retraining and monitoring measures, but precise details have not been fully disclosed. How the US entity will implement these requirements while maintaining platform engagement remains a closely watched issue.
For American users and businesses, the transition is expected to be seamless. TikTok has assured employees and advertisers that the platform experience will remain largely unchanged. Advertising campaigns, creator partnerships, and TikTok Shop operations can continue without disruption, giving marketers much-needed clarity after years of uncertainty over the platform’s US operations.
Oracle’s role, which previously focused on providing data and computing support through Project Texas, now extends to equity ownership and board-level oversight. This deeper involvement may influence data practices, content moderation, and algorithm policies in the United States, providing regulators and users with greater confidence in compliance.
The deal also resolves tensions in US-China technology relations, providing a blueprint for handling Chinese-owned platforms in the United States. While the model may set a precedent for other apps and platforms, it also highlights the complexity of balancing foreign ownership, regulatory compliance, and operational independence in a market with heightened scrutiny over data and national security.
Overall, the agreement offers stability to the 170 million Americans using TikTok and the businesses that rely on the platform for marketing and commerce. By establishing a US-controlled entity with clear governance, the deal removes a major source of uncertainty and enables long-term planning for advertisers, creators, and investors alike. However, how this approach will shape future Chinese-owned platforms operating in the US remains to be seen, leaving some questions about long-term regulatory expectations.
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