TikTok has finalized a long-awaited deal to spin off its U.S. operations, securing the future of the popular video app for millions of American users after years of political and legal uncertainty.
In a statement released Thursday, TikTok confirmed the creation of a new U.S.-based joint venture that will operate under what it described as strict national security safeguards, including protections around user data, algorithms, content moderation, and software systems.
Under the agreement, U.S. tech giant Oracle, UAE-based investment firm MGX, and private equity firm Silver Lake will each hold a 15% stake in the new entity. TikTok’s Chinese parent company, ByteDance, will retain a minority share of 19.9%.
President Donald Trump welcomed the deal, calling it a major victory for U.S. interests. “I am so happy to have helped in saving TikTok,” Trump wrote on social media, adding that the platform will now be owned by “Great American Patriots and Investors.”
For TikTok’s more than 200 million users in the United States, the immediate impact is simple: the app is staying online.
While the user experience is not expected to change overnight, key technical shifts are underway. The new U.S. entity will retrain TikTok’s algorithm using American user data, with Oracle overseeing the storage and security of that data — a move aimed at addressing long-standing concerns over Chinese access to sensitive information.
TikTok U.S. CEO Shou Chew will serve on a seven-member board dominated by American executives, including senior leaders from Oracle, Silver Lake, and Abu Dhabi-based MGX.
However, several questions remain unresolved. The deal’s valuation has not been disclosed, and Chinese authorities have yet to publicly comment on the final structure. Some legal experts also argue the arrangement may still fall short of fully separating ByteDance from TikTok’s U.S. operations, as required under U.S. law upheld by the Supreme Court.
The agreement also covers other ByteDance-owned apps, including CapCut and Lemon8, bringing them under the same U.S. security framework.
After briefly going offline earlier this year amid legal uncertainty, TikTok’s future in the U.S. now appears secured — at least for the foreseeable future.
