US Deal Allows TikTok to Maintain Operations Despite Ban Threat, White House Officials Say
A joint venture led by US-based investors Oracle and Silver Lake has been formed to take over the operations of TikTok in the United States, paving the way for the app to maintain its presence in the country despite a federal law that mandated a ban. The deal was finalized on Thursday, according to a White House official.
The bipartisan law passed in 2024 required ByteDance, the China-based parent company of TikTok, to sever ties with its American operations or risk losing access to US app stores and web-hosting services. However, President Trump issued executive orders every few months directing the Justice Department not to penalize tech companies that host TikTok on their platforms, keeping the app available in the US.
Under the new arrangement, a group of investors will own 45% of the company, while ByteDance will retain 19.9%, below the 20% cap allowed under the law. The deal involves the formation of a joint venture with U.S.-based Oracle and Silver Lake, Abu Dhabi-based MGX, and other investors.
The new structure allows TikTok's US operators to "retrain, test, and update" its content recommendation algorithm using data from American users, while Oracle will review and validate source code on an ongoing basis. The app's US version will also be interoperable with the global version, ensuring that Americans can still access global content under the new deal.
The arrangement has raised concerns about whether it reaches the threshold of separation from ByteDance intended by lawmakers when they wrote the law. Congress ultimately left it up to President Trump to decide what constitutes a "qualified divestiture."
GOP Rep. John Moolenaar, chairman of the House Select Committee on the Chinese Communist Party, said that the panel will have a public hearing in the coming months focused on two key questions: whether the deal ensures that the CCP does not have influence over the algorithm and whether Americans can assure their data is secure.
The deal has been criticized by lawmakers who argue that TikTok poses significant national security risks. The Chinese government could use the app to spy on Americans, collect vast amounts of data, and carry out influence operations.
A joint venture led by US-based investors Oracle and Silver Lake has been formed to take over the operations of TikTok in the United States, paving the way for the app to maintain its presence in the country despite a federal law that mandated a ban. The deal was finalized on Thursday, according to a White House official.
The bipartisan law passed in 2024 required ByteDance, the China-based parent company of TikTok, to sever ties with its American operations or risk losing access to US app stores and web-hosting services. However, President Trump issued executive orders every few months directing the Justice Department not to penalize tech companies that host TikTok on their platforms, keeping the app available in the US.
Under the new arrangement, a group of investors will own 45% of the company, while ByteDance will retain 19.9%, below the 20% cap allowed under the law. The deal involves the formation of a joint venture with U.S.-based Oracle and Silver Lake, Abu Dhabi-based MGX, and other investors.
The new structure allows TikTok's US operators to "retrain, test, and update" its content recommendation algorithm using data from American users, while Oracle will review and validate source code on an ongoing basis. The app's US version will also be interoperable with the global version, ensuring that Americans can still access global content under the new deal.
The arrangement has raised concerns about whether it reaches the threshold of separation from ByteDance intended by lawmakers when they wrote the law. Congress ultimately left it up to President Trump to decide what constitutes a "qualified divestiture."
GOP Rep. John Moolenaar, chairman of the House Select Committee on the Chinese Communist Party, said that the panel will have a public hearing in the coming months focused on two key questions: whether the deal ensures that the CCP does not have influence over the algorithm and whether Americans can assure their data is secure.
The deal has been criticized by lawmakers who argue that TikTok poses significant national security risks. The Chinese government could use the app to spy on Americans, collect vast amounts of data, and carry out influence operations.
thanks to oracle & silver lake forming a joint venture with them to take over their US ops 
the deal is legit 
45% of the company will be owned by these investors while byte dance only gets 19.9% 
it's kinda interesting cuz now tiktok's us version can still access global content & american users can enjoy that too 
but what's really got ppl worried is whether this deal means tiktok is still technically part of byte dance & if the ccp has a say in its algorithm 
reps are calling for public hearings to figure out if this deal actually meets the law 
Can't we just have one smooth sailin' day without some politician or law-maker tryin' to stir up drama? 
I mean, I get it, national security concerns and all that jazz, but can't we just focus on gettin' the job done instead of playin' politics? 
That doesn't seem like a lot of separation from "owning" the company. Can't we just trust TikTok to do its own thing and not let China get involved? 
. We need more transparency and accountability, not less.
. And come on, the app's already available in the US without any major issues, so what's the big deal? The new deal just means that TikTok's got some extra safety measures in place, which is actually kinda cool 
... I'd be salty too if my company had to divest that much equity 
. But for now, let's not jump to conclusions and assume the worst about something that might be more complex than we think 
. But on the other hand, I do worry about whether we're sacrificing some security for convenience 
. What's to stop ByteDance from just pulling a switcheroo and using this joint venture thingy to get back into our lives? 
. One thing's for sure, though - it's gonna be a wild ride 
. And what about the security concerns? Can we really trust that TikTok's gonna keep our data safe? 
i mean i get that china is trying to expand its tech reach and all that, but can't we just have a level playing field here? 
, but at the same time, it doesn't make sense that TikTok would just become a part of Oracle and Silver Lake 
. Can't we just have some clarity here?