E-Paper
TikTok-US deal sealed, but is the ‘For You’ page fight over? Who owns what now
With the new deal, US user data will be stored locally in a system run by Oracle, a move aimed at addressing long-standing fears related to TikTok.
After years of looming bans and political wrangling, TikTok has finally secured a deal that allows it to continue operating in the United States, ending prolonged uncertainty for its nearly 200 million American users.
The agreement clears the way for a new US-based entity, reshaping ownership, data control and the future of TikTok’s closely guarded recommendation algorithm, dubbed in-app as “For you page”.
Why TikTok needed a deal
TikTok’s future in the US had been hanging by a thread since Congress passed legislation in 2024 mandating that its Chinese parent company, ByteDance, divest control of the app or face an outright ban. The law, backed by bipartisan majorities and signed by then-President Joe Biden, set a January 2025 deadline.
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As that deadline approached, TikTok briefly went dark for several hours.
However, President Donald Trump signed multiple executive orders on his first day back in office and taking the app's popularity among youth into cognisance, he allowed the app to continue operating while negotiations over a sale or restructuring were finalised.
What the new TikTok US entity looks like
Under the deal, Oracle, UAE-based MGX and investment firm Silver Lake will each own 15 per cent of the newly formed entity, while TikTok’s Chinese parent ByteDance will keep a 19.9 per cent stake.
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The company said “the Joint Venture, built on the foundation of the TikTok US Data Security (USDS) organization, will operate as an independent entity governed by seven-member, majority-American board of director.”
Importantly for users, American TikTok accounts will continue using the same app, with no immediate changes to how the platform looks or functions.
What is the algorithm war?
The so-called “algorithm war” is not just about who owns TikTok, but about who controls what people see – and just as importantly, what they don’t.
US lawmakers have repeatedly warned that TikTok’s recommendation system could be used to amplify certain narratives while quietly suppressing others, creating powerful echo chambers where users are repeatedly fed similar viewpoints.
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Now with the new entity in place, TikTok said the algorithm will be retrained, tested and updated using US user data.
China has previously maintained that the algorithm must remain under Chinese control by law. However, the US legislation explicitly requires that any divestment must sever TikTok’s algorithmic ties with ByteDance.
With the new deal, US user data will be stored locally in a system run by Oracle.
How TikTok became so powerful
TikTok’s rise has been one of the most dramatic transformations in the digital entertainment space. Launched in China in 2016 as Douyin by ByteDance, the international version, TikTok, debuted in 2017.
Its growth accelerated after merging with lip-syncing app Musical.ly in 2018. From dance trends and cooking tutorials to political commentary, TikTok redefined how creators find fame, bypassing traditional gatekeepers.
The platform’s short-video format also helped fuel its popularity. While it started with 15-second clips, TikTok gradually expanded limits to 10 minutes, and now allows some users to post videos as long as 60 minutes.
TikTok’s massive appeal has also made it a lightning rod for suspicion. Governments around the world have scrutinised the app over data privacy and potential influence by the Chinese state.
India banned TikTok and other Chinese apps in 2020, citing national security concerns.
Who owns what
Under the new structure, Oracle, Silver Lake and Abu Dhabi-based AI investment firm MGX will act as managing investors, each holding a 15% stake. Other investors include the investment firm of Michael Dell, the billionaire founder of Dell Technologies.
Adam Presser, a former TikTok executive who previously headed operations and trust and safety, will serve as CEO of the new entity. He will work with a seven-member board that has a majority of American directors and includes TikTok CEO Shou Chew.
Oracle executive chairman Larry Ellison, a longtime Trump ally, is among the deal’s most prominent backers.
The Chinese government has not publicly commented on the announcement.
Trump’s role
President Trump publicly praised the agreement, framing it as a diplomatic and political win. In a Truth Social post, he thanked China’s President Xi Jinping “for working with us and, ultimately, approving the Deal.”
Trump added that he hopes “that long into the future I will be remembered by those who use and love TikTok.”
(With agency inputs)
