A landmark agreement has been reached to ensure the continued operation of TikTok in the United States, resolving years of regulatory uncertainty. The deal establishes a U.S.-based joint venture that will assume responsibility for key operational areas, including user data security, content recommendation systems, and platform moderation.
The arrangement permits TikTok’s parent company, ByteDance, to retain oversight of core business functions such as advertising and e-commerce. However, a newly formed entity, backed by a consortium of investors including Oracle, Silver Lake, and Abu Dhabi’s MGX, will govern sensitive operations tied to national security concerns. This structure is designed to align with U.S. regulations on foreign ownership.
The resolution follows a prolonged review process initiated during the previous administration, which cited potential risks associated with foreign control of the popular social media platform. The newly formed venture will be governed by a board predominantly composed of U.S. citizens, and its algorithm for American users will be managed domestically to prevent external influence.
Financial valuations place the worth of the U.S. venture at approximately $14 billion. The agreement is slated to be finalized in late January, averting a potential ban that was scheduled to take effect.
The ownership composition of the venture has drawn attention, contributing to ongoing discussions about media concentration and the influence of major investors in digital platforms. Critics have voiced concerns over the growing footprint of certain financial backers in the media landscape, while proponents argue the deal successfully addresses longstanding security questions.
The outcome provides clarity for the platform’s vast American user base and business partners, concluding a multi-year chapter of geopolitical and commercial negotiations over one of the world’s most prominent social media applications.