After years of political tension and legal uncertainty, TikTok has taken a major step to secure its future in the United States. The popular short-video platform, owned by China-based ByteDance, has signed binding agreements to hand over operational control of its US business to a new group of investors. This move aims to address long-standing national security concerns raised by American officials and to prevent a possible ban of the app in the country.
TikTok is not just another social media platform in the US. It is used regularly by more than 170 million Americans and has become a powerful space for entertainment, creativity, marketing, and even political discussion. Because of its Chinese ownership, however, US authorities have repeatedly questioned whether user data and content algorithms could be influenced or accessed by the Chinese government. These concerns date back to August 2020, when then President Donald Trump first attempted to ban the app unless its US operations were sold.
The new agreement marks a turning point in this long dispute. Under the deal, TikTok’s US operations will be placed under a new American joint venture, valued at around $14 billion. This entity will be owned mostly by US and global investors. Companies such as Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment group MGX will together hold about 80.1% of the stake. ByteDance will retain a minority holding of 19.9%, allowing it to remain financially connected but with reduced control.
According to people familiar with the agreement, the joint venture will operate as an independent company. It will be responsible for key areas such as data protection, content moderation, and algorithm security within the US. TikTok’s US business, which generates revenue through advertising and e-commerce, will remain the main money-earning unit. In return, the new joint venture will receive a portion of the revenue for providing technology support and data-related services.
Despite the scale of the deal, important questions remain unanswered. One of the biggest concerns raised by US officials is about TikTok’s powerful recommendation algorithm. This algorithm decides what videos users see and plays a major role in shaping opinions, trends, and online behavior. It is still unclear whether the algorithm has been fully transferred to the US entity, licensed for use, or continues to be controlled from China. Some experts believe that without full algorithmic independence, security concerns may not be completely resolved.
TikTok’s CEO has reportedly told employees that US-based teams will manage sensitive areas such as data security and content policies. The US entity is also expected to handle backend operations, including storing American user data and overseeing how content is recommended. Oracle’s role, according to earlier reports, includes monitoring data systems rather than directly controlling TikTok’s core technology.
This deal also reflects a broader global trend where technology companies are increasingly caught between governments, regulations, and geopolitical rivalries. TikTok’s case shows how digital platforms are no longer seen as neutral tools but as powerful actors with social and political influence. For the US government, the agreement offers a possible compromise: allowing a popular app to continue operating while limiting foreign control. For ByteDance, it helps preserve access to one of its most important markets.
In the coming months, the success of this arrangement will depend on how transparently it is implemented and whether it truly satisfies regulatory and public concerns. For millions of users, creators, and businesses that depend on TikTok, the deal brings cautious relief. While uncertainty has not fully disappeared, this shift in control could shape the future of how global tech companies operate across national borders in an increasingly divided digital world.
