tiktokOwned by the Chinese company ByteDance, it has been at the center of controversy in the US for years because user data could potentially be accessed by the Chinese government.

As a result, US users often find themselves caught in the middle of this tension. Last year, the app suffered a temporary outage in the US that left millions of users in suspense before quickly recovering. TikTok is back on the App Store and Google Play Store In February

Several investors competed to buy the app, and after Trump extended the TikTok ban for the fourth time, the battle finally ended. as DecemberTikTok has officially signed a deal to divest a portion of its US entity to a group of American investors And now the deal is set to close this week, Semafor Report Thursday

This happened almost three months after President Donald Trump signed an executive order which approved the sale of TikTok’s US operations to an American investor group.

President Trump a week ago announcement That Chinese President Xi Jinping has approved a TikTok deal, which would allow a consortium of US investors to control the platform. ByteDance has publicly stated that it will ensure that the platform remains available to American users.

Who owns TikTok in the United States?

According to a memo seen by TechCrunch, the investor group consists of Oracle, private equity firm Silver Lake and investment firm MGX. Collectively, they will hold 45% of the US operations, with ByteDance holding about a 20% stake. Axios The first reported the news, citing sources who estimate that TikTok US is worth around $14 billion — a figure Vice President JD Vance also cited.

In September, a report indicated that a “Framework” Agreement TikTok was founded in the US and China with a consortium of investors overseeing TikTok’s US operations – including Oracle, Silver Lake, and Andreessen Horowitz. These investors were expected to hold 80% of the shares and the remaining shares would go 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 act as a trusted security partner, responsible for auditing and ensuring compliance with national security regulations, according to the memo. Notably, Oracle previously made a bid for TikTok in 2020, as the company already provides cloud services for TikTok and manages user data in the US.

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

ByteDance will not have access to information about TikTok’s US users or influence US algorithms.

The deal was supposed to close on January 22, 2026, so hopefully we’ll learn more soon.

What US users should know

Report from Bloomberg Point out that once the deal is finalized, the TikTok app will shut down in the US and users will have to migrate to a new platform. However, the features of this platform and how it will differ from the original app are largely unclear.

How do we get here?

To fully understand this high-stakes drama, we’ll first revisit the timeline of TikTok’s tumultuous relationship with the US government, which has led to various legal battles and negotiations.

The play first started in 1948 August 2020When Trump signed an executive order banning transactions with parent company ByteDance.

A month later, the Trump administration tried to force the sale of TikTok’s US operations to a US-based company. Top competitors included Microsoft, Oracle, and Walmart. However, temporarily a judge of the United States blocked Trump’s executive order allows TikTok to continue operating while the legal battle rages.

Things began to progress even more last year after the transition to the Biden administration. after The Senate Bill passed against TikTok President Joe Biden Sign it.

in response, TikTok sued the US governmentchallenges the constitutionality of the ban and argues that the app and its American users are violating their First Amendment rights. The company has consistently denied that it poses a security threat, insisting that its data stored in the US complies with all local laws.

Fast-forward to 2024: Trump He had a change of heart since his first term and is trying to achieve a 50-50 ownership arrangement between ByteDance and a US company.

There have been several competitors including People’s Bid for TikTok Project Liberty is a consortium organized by founders Frank McCourt. The group is backed by investment firm Guggenheim Securities and law firm Kirkland & Ellis. Backers include Reddit co-founders Alexis OhanianTV personality and investor Kevin O’LearyWorld Wide Web inventor Tim Berners-Lee, and senior research scientist David Clarke.

Another group is led by the American Investor Consortium employer.com the founder Jesse Tinsley and includes Roblox co-founders David BaszukiAnchorage Digital co-founder Nathan McCauley, and famous YouTuber Mr. Beast.

Others are included in the race the amazon, Aplovin, Microsoft, Confusion AI, RumbleWalmart, Zoop, former Activision CEO Bobby Kotickand former US Treasury Secretary Steven Mnuchin.

Story updated after publication.