TikTok's US Deal: Ensuring Continuity and Security
Saturday, 2026/01/24186 words3 minutes1207 reads
TikTok has successfully closed a deal that ensures its continued operation in the United States, addressing long-standing concerns from Washington. The agreement comes after years of negotiations and attempts to ban the app over national security issues related to its Chinese ownership.
Under the new arrangement, a joint venture called TikTok USDS Joint Venture LLC will be responsible for securing US user data, applications, and algorithms. This entity will be governed by a board with a majority of American directors, aiming to alleviate fears about data privacy and cybersecurity.
The deal involves several key investors, including Oracle, Silver Lake, and MGX, each holding a 15% stake in the US operations. ByteDance, TikTok's parent company, will retain a 19.9% share. Notably, Oracle will play a crucial role in securing American user data and overseeing the retraining of TikTok's content recommendation algorithm.
This agreement marks a significant shift in TikTok's US presence, potentially affecting how the app functions for its 200 million American users. While the platform will continue to operate, experts suggest that changes to the algorithm and data handling may result in a different user experience.
