TikTok’s Future Secured as US-China Agreement Clears Way for Continued Operations

TikTok‘s future in the United States now appears secure after the US and China approved a deal that allows the popular app to continue operating under new ownership rules.

A year after a federal law effectively ordered TikTok to be sold or banned, the app’s US operations have officially moved into a new joint venture backed mainly by American investors.

A White House official confirmed that both governments signed off on the agreement, clearing the biggest hurdle facing the video platform and its 170 million U.S. users.

The law, passed in 2024 and upheld by the Supreme Court, required TikTok’s China-based parent company, ByteDance, to cut ties with the app’s American business or lose access to US app stores and hosting services.

While the ban technically took effect in January 2025, President Donald Trump issued repeated executive orders telling the Justice Department not to punish companies that continued to host TikTok, keeping the app available during negotiations.

According to Yahoo, TikTok confirmed that the new company is now in place. Oracle, Silver Lake, and Abu Dhabi-based MGX will serve as the managing investors, together owning 45% of the venture.

Another 35% is held by eight additional investors, including Michael Dell’s investment office and trading firm Susquehanna International Group.

ByteDance will retain a 19.9% stake, staying just under the 20% ownership limit set by US law.

TikTok to Rebuild US Algorithm

Under the new structure, TikTok said its US team will retrain and update the recommendation system using only American user data.

Oracle will also review and validate the app’s source code on an ongoing basis, CBS News reported.

The company added that US users will still be able to view global content, meaning TikTok will remain connected to videos from around the world.

The new board will include representatives from several investors, along with current TikTok CEO Shou Chew. Adam Presser, a longtime TikTok executive, will lead the US-based company as CEO.

Still, questions remain. The law requires a full separation between ByteDance and TikTok’s US operations, including limits on cooperation around data and algorithms. Congress left it to the president to decide whether the deal meets those standards.

Rep. John Moolenaar of Michigan, who leads the House committee focused on China, said lawmakers will hold hearings soon.

“One is: Does it make sure that the CCP does not have influence over the algorithm? And the other is: Can we assure Americans that their data is secure?” he said.

Originally published on vcpost.com