TikTok U.S. Deal Secures Platform’s Future, but Leaves Key Questions Unanswered

TikTok has finalized a long-awaited agreement that will allow the popular video-sharing platform to continue operating in the United States, ending years of uncertainty over a potential ban. The deal establishes a new U.S.-based joint venture backed by major investors, including Oracle, Silver Lake, and Abu Dhabi–based investment firm MGX, while separating American operations from Chinese parent company ByteDance.

While the agreement ensures continuity for TikTok’s estimated 170 million U.S. users, it does not fully resolve concerns raised by lawmakers over data security, algorithm control, and political influence. It also leaves open questions about whether users and creators will notice meaningful changes to the app’s experience.

Why the deal became unavoidable

The agreement follows the passage of bipartisan legislation in 2024 requiring TikTok to divest from ByteDance or face a nationwide ban. President Joe Biden signed the law, setting a January 2025 deadline for compliance.

When no deal had been finalized by the deadline, TikTok briefly went offline in the U.S. That interruption lasted only hours. On his first day back in office, President Donald Trump issued an executive order allowing the app to continue operating while negotiations resumed. Subsequent extensions kept TikTok running until the current agreement was reached.

The new structure creates a U.S.-controlled entity responsible for American operations, data storage, and compliance, a central demand of U.S. lawmakers.

What users should — and shouldn’t — expect to change

TikTok says American users will continue using the same app, with no requirement to download a separate version. However, the company has acknowledged that changes will occur behind the scenes, particularly involving the recommendation algorithm that drives its video feed.

Under the agreement, ByteDance will license the algorithm to the U.S. entity, which will then retrain it using American user data. While this preserves continuity, analysts say retraining inevitably alters how content is ranked and surfaced.

“Any noticeable change to a social platform risks alienating users,” said Jasmine Enberg, an analyst at eMarketer. Even subtle shifts in recommendations can affect engagement and creator visibility.

Forrester analyst Kelsey Chickering said trends dominating U.S. feeds are likely to feel more American in character. Global content will still appear, but its prominence may change, potentially reshaping the cultural mix that has defined TikTok’s appeal.

TikTok has said U.S. creators will remain discoverable internationally and that businesses will retain global reach, though details on how interoperability between U.S. operations and ByteDance-managed regions will work remain limited.

Updated rules and user policies

Alongside the ownership changes, TikTok has updated its U.S. Terms of Service. The revisions clarify that users retain ownership of their content, while allowing TikTok to use that content to operate and improve the platform, subject to user settings.

The company also reaffirmed age-based protections, including a restricted “Under 13 Experience” for younger users. In addition, creators are now explicitly responsible for labeling AI-generated content, reflecting broader industry moves to address transparency concerns.

Political ties draw scrutiny

Some of the deal’s most powerful backers have close ties to the Trump administration, raising concerns among users and advocacy groups.

Oracle co-founder Larry Ellison, who remains a senior executive despite stepping down as CEO, is among the most prominent figures involved. Ellison has longstanding connections to Trump and previously supported efforts during Trump’s first term to force ByteDance to sell TikTok’s U.S. operations.

Vice President JD Vance also played a central role in the negotiations, according to officials familiar with the talks. In September, Vance and Trump joined negotiations by phone while U.S. officials met Chinese counterparts in Madrid, pressing Beijing to approve a deal framework.

Those connections have fueled concerns about content moderation and political neutrality. Analysts warn that any perception of ideological bias or lax enforcement against misinformation could prompt users and advertisers to migrate to competing platforms.

Security concerns remain unresolved

Despite the deal, the core national security debate has not been fully settled.

Lawmakers argued that TikTok’s ownership structure allowed the Chinese government potential influence over data and content recommendations. The 2024 law explicitly bars ByteDance from cooperating in the operation of a U.S. content recommendation algorithm.

That provision has prompted questions about how ByteDance’s continued role as the algorithm licensor aligns with the law’s intent. The long-term legal and regulatory implications of that arrangement remain unclear and could invite further scrutiny.

Creators and businesses react cautiously

For many small businesses and creators, the deal brings relief rather than celebration.

Skip Chapman, co-owner of KAFX Body in New Jersey, said uncertainty over a potential ban had weighed heavily on his business. Around 80% of his sales come through TikTok Shop, which he uses as his primary customer acquisition channel.

Chapman said he is cautiously optimistic but hopes new owners continue to prioritize e-commerce features that have become central to the platform’s growth.

In Las Vegas, restaurant owner Vanessa Barreat said TikTok’s visibility has helped her attract tourists and reduce marketing costs. She described her response to the deal as watchful rather than fearful.

“TikTok has empowered so many voices that didn’t have access to platforms like this before,” she said. “That impact doesn’t disappear overnight.”