TikTok’s China problem ends as U.S. investors seize control in $14bn power shift

On January 22, 2026, TikTok confirmed the creation of TikTok USDS Joint Venture LLC, a new U.S.-based entity formed under President Trump’s executive order approving the sale of TikTok’s American business to U.S. investors.

The deal reduces Chinese ownership to under 20 percent and places operational control of TikTok in American hands.

Who owns TikTok in the United States now

TikTok’s parent company ByteDance will retain a 19.9 percent stake in the new U.S. entity. The remaining ownership belongs to non-Chinese investors.

The managing investor group consists of Oracle, Silver Lake, and MGX. Each holds a 15 percent stake, giving the group 45 percent collective control.

The rest of the shares are held by existing non-Chinese ByteDance investors.

The U.S. TikTok business is valued at roughly $14 billion, a figure publicly cited by Vice President JD Vance.

What TikTok USDS controls

TikTok USDS Joint Venture LLC will oversee:

• U.S. user data
• Content moderation
• Platform operations
• Software assurance
• Algorithm security compliance

Oracle will serve as TikTok’s trusted security partner. It will host U.S. user data, audit compliance with national security requirements, and oversee the separation of the U.S. platform from China.

Oracle previously attempted to acquire TikTok in 2020 and already provides cloud services to the app.

According to White House officials, Oracle will secure and retrain a U.S.-specific version of TikTok’s algorithm. ByteDance will lease the algorithm to the U.S. entity but will have no access to American user data and no control over the U.S. algorithm’s operation.

What changes for American users

For TikTok’s roughly 200 million U.S. users, the app will continue to operate normally.

There is no requirement to download a new app.

TikTok has returned to both the Apple App Store and Google Play Store following a temporary U.S. outage in 2025 tied to the divestment deadline.

Some users have already seen updated service terms, including expanded location data collection if permissions are granted. TikTok now seeks precise location data rather than approximate location only, subject to user consent.

How the algorithm may change under American control remains unclear.

How the standoff began

The conflict began in August 2020, when President Donald Trump signed an executive order targeting ByteDance over national security concerns.

The administration attempted to force a sale of TikTok’s U.S. operations to American companies including Microsoft, Oracle, and Walmart. A federal judge temporarily blocked the order, allowing TikTok to continue operating while legal challenges played out.

Under President Joe Biden, Congress passed legislation requiring TikTok to divest or face a ban. TikTok sued the U.S. government, arguing the law violated constitutional protections and denied any security threat.

Negotiations continued through multiple deadline extensions under Trump’s second term.

In December 2025, TikTok signed a final agreement to divest its U.S. business.

Earlier in 2025, Trump publicly stated that Chinese President Xi Jinping had approved the framework for a U.S.-controlled TikTok entity.

Competing bids that lost

Several investor groups competed to acquire TikTok before the deal was finalized.

The People’s Bid for TikTok, backed by Project Liberty founder Frank McCourt, included support from Alexis Ohanian, Kevin O’Leary, Tim Berners-Lee, and David Clark.

Another group led by Jesse Tinsley included Roblox co-founder David Baszucki, Anchorage Digital co-founder Nathan McCauley, and YouTuber MrBeast.

Other bidders included Amazon, Microsoft, Walmart, Rumble, AppLovin, Perplexity AI, Zoop, Bobby Kotick, and former Treasury Secretary Steven Mnuchin.

None prevailed.

The bottom line

TikTok now operates in the United States under American control, with Chinese ownership capped below 20 percent and national security oversight embedded into its infrastructure.

The app survives. China loses control. The algorithm stays, but on American terms.