The social network TikTok, highly popular among Americans, is turning an important page in its history. After several years of tensions between the American and Chinese governments, an agreement has been reached to transfer control of the application to an American company. This decision marks a turning point in user data management and could have major repercussions on the functioning of the application. Let’s explore the details of this transaction and what it implies for the future of TikTok in the United States.
The 3 key points not to miss
- TikTok comes under American control with the creation of the joint venture “TikTok USDS Joint Venture LLC”.
- Oracle, Silver Lake, and the MGX fund will hold 45% of this new entity.
- Donald Trump welcomes this agreement, ending a saga of more than five years.
Agreement between ByteDance and the United States
After a long period of diplomatic tensions, ByteDance, the parent company of TikTok, has signed an agreement allowing a new American entity to take control of the application in the United States. Named “TikTok USDS Joint Venture LLC”, this joint venture will operate independently to ensure the protection of American users’ data. The goal is to ensure that TikTok’s recommendation algorithm is retrained on American data, thus avoiding any external manipulation.
Share distribution and new investors
The new ownership structure of TikTok includes Oracle, Silver Lake, and the Emirati investment fund MGX, which will hold 45% of the joint venture. ByteDance will retain a minority stake of 19.9%, while current investors, including several American funds, will own 30.1% of the shares. Larry Ellison, the founder of Oracle, will play a key role in TikTok’s technical operations in the United States.
Among the investors, there are also influential figures such as Michael Dell and Rupert Murdoch, as well as funds like Andreessen Horowitz and Silver Lake Partners. These personalities, often close to former President Donald Trump, are participating in this strategic transition.
Reactions and political implications
Donald Trump hailed this transaction as a personal victory, highlighting that, although he wished for total control by those close to his movement, the current agreement ensures a “fair” management of the application. However, some observers remain skeptical about the impartiality of the new owners, given their ideological proximity.
Consequences for TikTok users
With this change of control, American TikTok users might see changes in the application’s editorial policies. David Greene, from the Electronic Frontier Foundation, expresses concerns about the potential influence of the new owners on content. Despite these concerns, the transaction is expected to be finalized on January 22, 2026, marking a new chapter for TikTok in the United States.
Historical context: the rise of TikTok
TikTok, launched by ByteDance in 2016, quickly became a global phenomenon, attracting millions of users with its platform for sharing short and engaging videos. However, its rapid success also drew the attention of international regulators, particularly in the United States, where concerns about data security led to pressures for local control. The current agreement with the United States marks the culmination of several years of negotiations and political tensions, redefining the management and future of the application in the country.