TikTok’s U.S. business will soon operate under a new structure, separating it from its Chinese parent company, ByteDance, and placing control largely in the hands of American investors. Valued at around $14 billion, this deal includes major players such as Oracle, private equity firm Silver Lake, and Abu Dhabi’s MGX fund. President Trump stated that Chinese President Xi Jinping has approved the transaction, reflecting mutual benefit for both nations.
The new American entity will own approximately 80% of TikTok’s U.S. operations, with ByteDance holding less than 20%. Oracle plays a crucial role by overseeing data security and re-training the platform’s algorithm to ensure it operates independently of ByteDance’s influence. The governance structure features a board dominated by American directors to enhance oversight and safeguard user data.
Despite these safeguards, experts express doubts about the effectiveness of merely “monitoring” the algorithm rather than fully controlling it. They argue that government action should eliminate risks rather than simply auditing or supervising the technology. Moreover, Chinese authorities have yet to officially endorse the deal, making the final outcome uncertain.
This agreement highlights ongoing strategic tensions between the U.S. and China in technology and data security. By extending the deadline to enforce TikTok’s divestiture, the U.S. government has created space for negotiations, but political and regulatory challenges remain. TikTok’s future in America continues to hinge on complex international and domestic dynamics.
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