TikTok Reaches Deal to Continue Operating in the US Under American Ownership

Date: September 2025

The White House has confirmed that TikTok will continue operating in the United States under a new American-owned structure. The agreement is designed to address long-standing national security concerns while allowing millions of US users to keep using the popular short-video app.

Tiktok American Ownership

Background: From Ban Threats to a Landmark Deal

  • In 2024, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), requiring TikTok’s parent company, ByteDance, to divest its US operations or face a nationwide ban.
  • TikTok challenged the law in the Supreme Court, but in January 2025 the court upheld it, confirming the government’s authority to enforce divestment.
  • Deadlines were repeatedly extended, giving time for a negotiated solution between the US government, TikTok, and potential investors.

Key Details of the New Deal

  1. Majority American Control
    • The new entity will place TikTok’s US operations mostly under American ownership.
    • ByteDance will retain less than 20% stake, ensuring US investors and executives hold the majority.
  2. Board Structure & Algorithm Oversight
    • A 7-member board will oversee TikTok’s US operations, with 6 seats reserved for American representatives.
    • ByteDance may hold just one seat, limiting its decision-making power.
    • Oracle will play a central role in managing US user data and algorithm oversight, ensuring compliance with security requirements.
  3. Executive Order by the White House
    • President Trump is expected to sign an executive order confirming that the agreement satisfies the 2024 law.
    • This order will effectively delay any ban and give the green light for TikTok to continue in the US.
  4. American Investors Involved
    • Potential US investors include Oracle, Silver Lake, Michael Dell, and the Murdoch family, highlighting the strategic importance of the deal.
    • Their involvement may also raise questions about media consolidation and influence.

Concerns and Challenges Ahead

  • National Security Questions: Critics argue that even with reduced ownership, ByteDance could still have indirect influence.
  • Algorithm Licensing: The arrangement allows the US to control TikTok’s algorithm through a licensing model, but enforcement remains uncertain.
  • Media Influence: With figures like the Murdochs and Larry Ellison involved, some observers worry about the growing influence of media tycoons over digital platforms.
  • Congressional Oversight: Lawmakers are expected to closely monitor the deal to ensure full compliance.

What This Means for US Users

For now, TikTok will remain available in the US, avoiding a ban that could have affected millions of creators, businesses, and users. The deal offers a balance between national security and user freedom, but its success will depend on transparency and strict regulatory compliance in the months ahead.

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