TikTok, owned by the Chinese company ByteDance, has been at the center of controversy in the U.S. for four years now due to concerns about user data potentially being accessed by the Chinese government.

As a result, U.S. users have often found themselves caught in the middle of this tension. Earlier this year, the app experienced a temporary outage in the U.S. that left millions of users in suspense before it was quickly restored. TikTok returned to the App Store and Google Play Store in February. 

A number of investors competed to purchase the app, and after Trump extended the TikTok ban deadline for the fourth time, the battle is finally over. As of last week, TikTok officially signed a deal to divest a portion of its U.S. entity to a group of American investors.

This comes nearly three months after President Donald Trump signed an executive order that approves the sale of TikTok’s U.S. operations to an American investor group.

A week prior, President Trump announced that President Xi Jinping of China had given his approval of a TikTok deal, which would allow a consortium of U.S. investors to control the platform. ByteDance stated publicly that it would ensure the platform remains available to American users.

Who owns TikTok in the U.S.?

According to a memo viewed by TechCrunch, the investor group consists of Oracle, private equity firm Silver Lake, and investment firm MGX. Collectively, they will hold 45% of the U.S. operation, with ByteDance keeping nearly a 20% stake. Axios first reported the news, citing sources who estimate TikTok U.S. is valued at approximately $14 billion — a figure also mentioned by Vice President JD Vance.

In September, a report indicated that a “framework” deal was established between the U.S. and China, with a consortium of investors — including Oracle, Silver Lake, and Andreessen Horowitz — overseeing TikTok’s U.S. operations. These investors were expected to hold an 80% stake, and the remaining shares would belong to Chinese stakeholders.

The newly formed “TikTok USDS Joint Venture LLC” will oversee the app’s operations, including data protection, algorithm security, content moderation, and software assurance.

Oracle will serve as the trusted security partner, responsible for auditing and ensuring compliance with National Security Terms, according to the memo. The company already provides cloud services for TikTok and manages user data in the U.S. Notably, Oracle previously made a bid for TikTok back in 2020.

A White House official previously said Oracle would replicate and secure a new U.S. version of the algorithm, and the U.S.-based TikTok owners could lease the algorithm from ByteDance, which Oracle will then retrain. 

ByteDance will not have access to information about TikTok’s U.S. users or any influence over the U.S. algorithm.

​The deal is scheduled to close on January 22, 2026.

What users in the U.S. should know

Reports from Bloomberg indicate that when the deal is finalized, the TikTok app will be discontinued in the U.S. and users will need to transition to a new platform. However, the specifics of this platform remain largely unclear, including its features and how it will differ from the original app. 

How did we get here?

To fully understand this high-stakes drama, we’ll first revisit the timeline of TikTok’s tumultuous relationship with the U.S. government, which resulted in various legal battles and negotiations. 

The drama first began in August 2020, when Trump signed an executive order to ban transactions with parent company ByteDance. 

A month later, Trump’s administration sought to force a sale of TikTok’s U.S. operations to a U.S.-based company. The leading contenders included Microsoft, Oracle, and Walmart. However, a U.S. judge temporarily blocked Trump’s executive order, allowing TikTok to continue operating while the legal battle unfolded. 

Things began to progress even more last year following the transition to the Biden administration. After the Senate passed the bill against TikTok, President Joe Biden signed it.

In response, TikTok sued the U.S. government, challenging the constitutionality of the ban and arguing the app and its American users were having their First Amendment rights violated. The company has consistently denied that it poses a security threat, asserting that its data stored in the U.S. complies with all local laws.

Fast-forward to today: Trump has had a change of heart since his first term and is trying to achieve a 50-50 ownership arrangement between ByteDance and a U.S. company. 

There have been several contenders, including The People’s Bid for TikTok , a consortium organized by Project Liberty founder Frank McCourt. This group has the support of investment firm Guggenheim Securities and the law firm Kirkland & Ellis. Supporters include Reddit co-founder Alexis Ohanian, TV personality and investor Kevin O’Leary, inventor of the World Wide Web Tim Berners-Lee, and senior research scientist David Clark.

Another group, called the American Investor Consortium, is led by Employer.com founder Jesse Tinsley and includes Roblox co-founder David Baszucki, Anchorage Digital co-founder Nathan McCauley, and famous YouTuber MrBeast.

Others in the running included Amazon, AppLovin, Microsoft, Perplexity AI, Rumble, Walmart, Zoop, former Activision CEO Bobby Kotick, and former U.S. Treasury Secretary Steven Mnuchin.

The story has been updated after publication.