The future of TikTok in the United States has been settled after a $5 billion agreement that restructures ownership and governance of the video-sharing app, clearing regulatory hurdles in Washington and easing national security concerns that had threatened to force its removal from U.S. app stores. The deal, confirmed Thursday, follows months of negotiations involving U.S. officials, investors and TikTok's Chinese parent.
Under the arrangement, control of TikTok's U.S. operations shifts to a newly structured American-led entity, satisfying requirements set out in a 2024 law aimed at limiting foreign influence over platforms handling sensitive user data. The framework was approved by authorities in both Washington and Beijing, according to people familiar with the discussions.
Oracle will continue its role as the platform's primary technology partner, overseeing data storage and system integrity for U.S. users. The company's involvement, first established under earlier national security agreements, is central to assurances that American user data will remain insulated from foreign access.
President Donald Trump, who paused enforcement of the 2024 statute for 12 months at the start of his second term, said the agreement ensured the app's survival while meeting U.S. security demands. "I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice," Trump wrote on Truth Social.
In an internal message to employees, TikTok Chief Executive Shou Chew said the restructured company would operate with "clear safeguards" around data protection, platform security and content oversight. He said the partnership was designed to "uphold national security expectations while allowing TikTok to continue serving our U.S. community."
The new U.S.-based entity will be led by Adam Presser, TikTok's former chief operating officer. Its board will include Chew and Oracle executive Ken Glueck, along with representatives of major investors. According to people briefed on the structure, Oracle, Silver Lake, and Abu Dhabi-based MGX will each hold roughly 15% stakes, while ByteDance retains a significant minority position.
Additional investors include Revolution, a venture firm where Vice President JD Vance previously worked, and the private investment office of Michael Dell, founder of Dell Technologies.
As part of the settlement, the investor group will pay the U.S. government several billion dollars, fulfilling what Trump has previously described as a "tremendous fee-plus." The deal comes as TikTok's U.S. footprint continues to grow. The company now reports about 200 million users in the United States, up from roughly 170 million a year earlier, according to the Wall Street Journal.
Despite the agreement, some lawmakers and security analysts remain wary, arguing that ByteDance's retained stake could still expose the platform to pressure from Beijing. Administration officials counter that the governance structure, data controls and Oracle's oversight significantly reduce that risk.
