After months of intense negotiations and regulatory pressure, ByteDance appears to have reached a breakthrough agreement that will allow TikTok to continue operating in the United States through a notable restructuring of its ownership model.
The Trump administration has brokered a deal that will see ByteDance relinquish majority control of its popular video-sharing platform, retaining only a 20% stake while Oracle and Silver Lake will collectively own 80% of the new U.S. TikTok entity.
The arrangement, described as a “qualified divestiture,” directly addresses Congressional mandates concerning foreign ownership of platforms that handle sensitive American user data.
President Trump is expected to sign an executive order on September 25, 2025, that will delay enforcement of a potential TikTok ban for 120 days, providing adequate time to finalize operational changes and guarantee compliance with security requirements.
The TikTok saga enters a new phase as Trump grants a 120-day reprieve to implement critical security changes.
Central to the agreement is Oracle’s designation as TikTok’s data and security provider, which will host all U.S. user data domestically on American servers.
ByteDance will surrender control over TikTok’s recommendation algorithm, which will be retrained and operated exclusively on U.S.-based infrastructure.
Oracle will conduct continuous code reviews to verify the algorithm’s safety and transparency, while Chinese entities will be explicitly barred from accessing American user information under the new security framework.
The deal represents a delicate balancing act for ByteDance, which preserves some financial interest in the lucrative U.S. market while addressing bipartisan concerns about potential Chinese Communist Party influence.
National security officials have long worried about the platform’s potential use for surveillance and propaganda distribution to American users.
For TikTok’s millions of U.S. users, the joint venture model promises to maintain the platform’s user experience while implementing enhanced privacy protections compliant with American laws.
The company plans to launch its Change Makers Program in 2025, reinforcing its commitment to supporting charitable initiatives even amid ownership changes.
The shift to majority U.S. ownership could meaningfully alter operational decisions and content moderation policies, though TikTok continues to emphasize its positive social impact and community-building initiatives throughout this restructuring process.
This agreement may establish a precedent for handling similar concerns with other foreign technology companies operating in the United States.
The platform is expected to maintain its role as a key promotional channel for musicians who generate income through sync deals with brands and advertisers seeking to leverage TikTok’s massive audience reach.
The new corporate structure will feature a board of seven members, with six American experts overseeing operations to ensure compliance with national security requirements.
Musicians using TikTok can continue to benefit from its promotional capabilities while expanding their presence across streaming platforms to maximize their distribution and earnings potential.
