Inside TikTok’s US Deal: Ownership, Data and National Security

The TikTok deal redraws ownership, limits ByteDance’s control, brings in US-aligned investors, and sets a new global precedent for regulating foreign-owned tech platforms. This is what you need to know.

What did Donald Trump announce?

Donald Trump said a deal has been finalised to restructure TikTok’s ownership, allowing the app to continue operating for its 200 million US users.

Why was TikTok at risk of a ban in the US?

In 2024, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act, a law targeting apps controlled by foreign adversaries. Because TikTok’s parent, ByteDance, is based in China, the law mandated that TikTok divest its US business or face a nationwide ban.

What legal action followed?

TikTok challenged the law in TikTok, Inc. v. Garland, but the Supreme Court upheld the legislation as constitutional. Despite this, the platform briefly became unavailable in the US in January 2025 before President Trump intervened to delay enforcement.

What deal has now been finalised?

TikTok’s parent ByteDance has formalised a new US joint venture called TikTok USDS Joint Venture LLC. It is majority-owned (80.1%) by American and allied investors, including Oracle, Silver Lake and Abu Dhabi-based MGX. While Oracle will have a 15% stake, another 15% will be held by MGX, and Silver Lake will have 15%.

What does the new ownership structure do?

The US entity will store and secure US user data domestically (handled by Oracle), retrain and localise the algorithm on US data, oversee content moderation and cybersecurity protections, and be led by a majority-American board with American executives.

Is ByteDance still involved?

Yes, ByteDance retains a 19.9% share and continues to control certain commercial operations (like advertising and e-commerce licensing). But the platform’s data, algorithm oversight, and critical security functions are now under the new US venture’s governance.

What led to this compromise?

The deal closes years of uncertainty dating back to 2020, when the Trump administration first tried to ban TikTok on national security grounds. Negotiations included deadline extensions and high-level talks between US and China, with both governments eventually approving the structure.

What role did China play in the deal?

Trump said Chinese President Xi Jinping approved the arrangement, a key step given ByteDance’s Chinese ownership and regulatory oversight.

How significant is TikTok in the US?

TikTok remains one of the most widely used social platforms in America, with around 200 million users, especially popular among younger demographics.

Does the deal affect other ByteDance apps?

Yes. The restructuring also covers CapCut and Lemon8, ensuring they comply with the same US security and ownership requirements.

Why does Trump see this as politically significant?

Trump credited TikTok with helping him perform strongly among young voters in the 2024 election and said he wanted to be remembered for ‘saving’ the platform.

What does this mean for creators and advertisers?

For content creators and businesses, the deal means continuity: ads, outreach and monetisation strategies stay intact. The platform will continue to function while meeting stringent data and security requirements.

Why It Matters?

This is one of the most consequential tech-policy deals of the decade. It balances national security concerns with democratic access to digital platforms, reshapes global technology governance, and sets a precedent for how foreign-owned apps can operate under US law.

(With inputs from ANI and yMedia)