TikTok's US Deal: Ensuring Continuity and Security
Saturday, 2026/01/24247 words4 minutes1656 reads
TikTok has announced the successful closure of a pivotal deal that will enable the continuation of its operations in the United States, marking the culmination of a protracted and contentious negotiation process between Washington and Beijing. This agreement addresses the longstanding national security concerns raised by US lawmakers regarding the app's Chinese ownership under ByteDance.
The crux of the deal involves the establishment of TikTok USDS Joint Venture LLC, a new entity tasked with safeguarding US user data, applications, and the platform's influential algorithm. This joint venture will be overseen by a seven-member board, with a majority of American directors, aimed at assuaging fears surrounding data privacy and cybersecurity.
Notably, the ownership structure of TikTok's US operations has been reconfigured, with Oracle, Silver Lake, and MGX each acquiring a 15% stake. ByteDance will retain a 19.9% share, while the remaining equity is distributed among various investors, including affiliates of prominent Trump supporters. Oracle's role is particularly significant, as it will be responsible for securing American user data and overseeing the retraining of TikTok's content recommendation algorithm exclusively on US data.
This arrangement represents a substantial shift in TikTok's operational paradigm within the US market. While ensuring the app's continued availability to its 200 million American users, the deal introduces potential alterations to the user experience. Experts posit that the localized algorithm training and stringent data protection measures may result in a platform that operates distinctly from its global counterpart, potentially affecting content recommendations and overall app performance.
