TikTok Finalizes Deal with Oracle-Led Group to Keep App Running in US

ByteDance has reportedly reached an agreement that will allow TikTok to continue operating in the United States under new ownership. The deal involves selling the American version of TikTok to a group of investors led by Oracle, Silver Lake, and Abu Dhabi-based MGX, set to take effect January 22, 2026.

The agreement comes just before the expiration of President Trump's fourth Executive Order postponing enforcement of the "Protecting Americans from Foreign Adversary Controlled Applications Act." This development provides certainty for TikTok's 170 million US users and the creator economy built around the platform.

The New TikTok US Structure

According to CNBC reports, TikTok CEO Shou Zi Chew informed employees about the creation of a new entity called "TikTok USDS Joint Venture LLC." This joint venture will house TikTok's US operations under the management of three key investors.

"The new TikTok US entity will be responsible for re-training the algorithm on US user data to ensure the content feed is free from outside manipulation," Chew reportedly told staff in an email.

This agreement appears to be largely similar to the deal announced by the Trump administration in September, though final details took significantly longer to materialize. Chinese officials had seemingly delayed finalizing the agreement, possibly seeking additional trade or diplomatic concessions.

The ownership structure gives majority control to US-based interests, with Oracle specifically overseeing the platform's algorithm. Oracle is led by Larry Ellison, a known Trump supporter, raising questions about potential political influence over the platform's content distribution.

For businesses already utilizing the platform for marketing campaigns, this transition represents a significant moment in TikTok's business marketing evolution, potentially affecting advertising strategies and audience targeting capabilities.

Potential Implications for Users and Content

The deal's structure has sparked discussion about how TikTok might evolve under partial US control. A primary concern is whether the Trump administration could influence TikTok's algorithms and content moderation policies, particularly given the Trump team's reported role in determining who sits on the governing board of the new entity.

Some observers worry that TikTok could eventually mirror recent changes at X (formerly Twitter), where right-leaning content and conspiracy theories allegedly receive preferential treatment. This concern is particularly relevant given TikTok's growing role as a news source.

Recent data from Pew Research Center indicates that more Americans now get news content from TikTok than from X. This evolution in media consumption patterns makes the platform potentially valuable for political messaging, especially for reaching younger voters.

The specific algorithm provisions in the deal may be crucial. The new US entity will "re-train" the algorithm rather than completely replacing it, suggesting a balance between preserving TikTok's successful recommendation system while addressing security concerns.

Technical Implementation Considerations

Data sovereignty concerns will likely shape how the platform operates under new ownership. The deal reportedly includes provisions for storing American user data exclusively on US servers, with enhanced security protocols to prevent unauthorized access by foreign entities.

Content moderation practices may also shift under the new structure, with potential changes to how political content, misinformation, and controversial topics are handled on the platform. This could significantly impact creators who discuss current events or political issues.

Business Continuity and Creator Impacts

For creators and businesses who rely on TikTok for income and marketing, the deal provides much-needed certainty after a year of uncertainty about the platform's future in the US.

While the agreement likely means business continuity in the near term, potential changes to the algorithm could eventually impact content discovery and audience development strategies. Creators may need to monitor how content promotion patterns evolve under the new management structure.

The deal's delayed implementation date—January 2026—gives businesses and creators over a year to prepare for any transition, though major changes to the user experience seem unlikely given TikTok's successful formula.

Strategic Considerations for Marketers

Businesses utilizing TikTok for customer engagement should remain flexible and prepared to adapt their content strategies as the platform evolves under new ownership. The transition period offers an opportunity to diversify social media marketing approaches while continuing to leverage TikTok's expansive reach and engagement potential.

Marketing professionals should pay particular attention to any shifts in demographic targeting capabilities or changes to the advertising platform that might emerge as part of the ownership transition. Companies with comprehensive social media marketing strategies that incorporate TikTok will need to stay informed about any operational modifications that could affect campaign performance.

How This Development Affects You

If you're a TikTok user or creator, here's what this news means:

TikTok will continue to operate in the US for the foreseeable future, eliminating immediate concerns about the app being banned.

While the ownership is changing behind the scenes, the core functionality and features of TikTok are likely to remain largely unchanged initially.

Over time, you may notice subtle shifts in what content gets promoted, particularly around politically sensitive topics or during election seasons.

What Happens Next

ByteDance and TikTok have not yet officially confirmed the deal, despite staff reportedly being notified. Final confirmation will likely come from both companies and the investor group in the coming days.

Questions remain about whether any additional concessions were made to secure Chinese approval for the deal, and what safeguards will be implemented to maintain TikTok's competitive advantage while addressing security concerns.

As this story develops, attention will turn to how much influence and control the US-led group will exert over TikTok's operations, and whether users will notice any changes to their experience on the platform.