WASHINGTON D.C. – In a move that concludes years of geopolitical tension and legal uncertainty, the United States and China have finalized a landmark agreement to transition TikTok’s U.S. operations into a majority American-owned entity. The deal, which officially closed on January 22, 2026, prevents a total blackout of the app for over 200 million American users.
Under the terms of the executive order signed by President Donald Trump—who has frequently credited the platform for his 2024 digital reach—TikTok’s U.S. arm will now operate as TikTok USDS Joint Venture LLC, headquartered on American soil.
The New Ownership Hierarchy
The restructuring significantly dilutes the influence of the Chinese parent company, ByteDance. The new ownership breakdown is as follows:
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ByteDance: Retains a minority stake of 19.9% (down from 100%).
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Oracle, Silver Lake, and MGX (Abu Dhabi): Each hold a 15% share.
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American Consortium: The remaining shares are held by high-profile investors, including Susquehanna, Dragoneer, and the family office of Dell Technologies Chairman, Michael Dell.
Security: Oracle as the “Guardian” of the Algorithm
Central to the deal is the protection of national security. For the first time, a licensed copy of TikTok’s powerful recommendation algorithm—often called its “secret sauce”—has been handed over to U.S. control.
Oracle will serve as the trusted technology partner, hosting all U.S. user data in its secure domestic cloud. The joint venture’s mandate includes retraining the algorithm on U.S. data to ensure the content feed remains “free from outside manipulation.”
A Political and Economic Victory
The deal, valued at approximately $14 billion, is being hailed by the White House as a masterstroke of diplomacy. President Trump took to social media to celebrate the finalization, thanking Chinese President Xi Jinping for his cooperation.
“I am very happy to have helped save TikTok!” Trump posted. “It will now be owned by a group of great American patriots and investors, and it will continue to be a vital voice for our nation.”
Beyond security, the deal is expected to generate $178 billion in economic activity over the next four years, securing thousands of jobs and providing certainty for the 7.5 million U.S. businesses that rely on the platform for marketing.
What Changes for Users?
For the average user, the transition will be seamless. While the back-end infrastructure and governance have moved to the U.S., the global interoperability of the app remains, allowing Americans to continue creating and sharing content with TikTok’s one billion users worldwide.
