Tik Tok avoided an American ban by signing a deal. The future course of the app in the United States was communicated to have been secured when the deadline of January 23rd of President Trump was accomplished, where ownership of the app was transferred to American investors in the deal worth $14 billion. (Although the venture’s exact value is still unknown, US Vice President JD Vance has suggested a $14 billion price tag).
Deal Details
Another bid by another new joint venture acquired the U.S. assets of TikTok with 50% ownership of Oracle, Silver Lake, and MGX. The affiliates of the parent by-ByteDance continued to control slightly more than 30% whereas the parent company controlled 19.9%, thus diluting Chinese control over it.
It will be led by CEO Adam Presser, who used to be the guardian of TikTok data, and security head Will Farrell. The board includes Shou Chew of Tik Tok, Kenneth Glueck, an Oracle employee and Susquehanna representatives.
The tasks that Oracle does to protect the data of U.S. users, retrain the algorithm on domestic feeds, and control content moderation.
Rocky Road
This episode began during the first term of Trump when he was facing the threat of being banned because of his security.
The legislation enacted by Biden in 2024 made ByteDance divest or risk losing the app. Trump delayed the enforcement, formally signed a trade agreement with China in the previous autumn, and set the new deadline after TikTok agreed to it in December. The result was hailed by more than 200 million U.S. users, who are entertained, news users, and creator incentives.
Security Wins?
The suggested protection measures comprise data firewall-protected and algorithm-based audits, yet, recently, ByteDance affects global e-commerce and advertising businesses through licensing the underlying technology.
The opponents are apprehensive that such a setup is a way to avoid the law on the illegal nature of algorithmic cooperation. The venture asserts that interoperability sustains the worldwide presence of U.S creators.
Road Ahead
Congressional scrutiny by regulatory organizations is also expected on the authenticity of compliance on security. The strategy will rely on the audits showing that no undue influence of Beijing will be present, which a crucial aspect is considering the current U.S.-China trade tensions.
The performance of TikTok will be appropriate in the short run, yet in the year 2026, more analysis of algorithms and the threats to the trust of users will arise.