TikTok Deal Finalised: Oracle Takes Key Role in New U.S. Ownership Structure

TikTok has officially sealed a major deal that reshapes how it operates in the United States and brings a leading American tech firm, Oracle, into the heart of its U.S. operations. This development ends years of political pressure, legal battles and threats of a nationwide ban. The move affects how TikTok handles data, content and its core recommendation system for more than 170-200 million U.S. users.

TikTok USDS Deal at a Glance

Why the Deal Was Needed and What Changed

After years of concern from U.S. lawmakers about national security risks tied to TikTok’s Chinese parent company, ByteDance, the U.S. government passed a law in 2024 requiring foreign-controlled apps like TikTok to be significantly restructured or face a ban. This law was upheld by the U.S. Supreme Court, and multiple deadlines were set for a sale or restructuring before enforcement could begin.

To address these concerns, TikTok and ByteDance negotiated a deal with U.S. authorities and Chinese regulators that creates a new American-led company called TikTok USDS Joint Venture LLC. This new entity will run TikTok’s U.S. operations under strict security and oversight standards.

The agreement has broad approval: both the U.S. and Chinese governments signed off on it, allowing TikTok to continue operating in the U.S. indefinitely.

How the Ownership Is Structured

The new TikTok USDS Joint Venture is mainly owned by a group of non-Chinese investors, with Oracle, private-equity firm Silver Lake, and Abu Dhabi-based investment company MGX each holding a 15% stake. This consortium collectively owns a large share of the U.S. business.

ByteDance will retain a 19.9% minority stake, just under the legal limit, while other existing investors and affiliates hold the remaining shares. This means ByteDance still has some financial interest, but operational control, especially over sensitive areas like data, now largely lies with the new majority group.

A seven-member board of directors, with a majority of American members, will oversee the joint venture. Leadership includes Adam Presser, formerly TikTok’s head of operations and safety, as CEO.

Oracle’s Role: Data, Security and Algorithms

Oracle’s involvement is central to the deal’s security commitments. As part of the agreement, Oracle will act as the “trusted security partner” for TikTok’s U.S. operations. Its responsibilities include:

• Storing U.S. user data securely in Oracle’s cloud systems based in the United States.
• Retraining and securing TikTok’s recommendation algorithm, the system that decides what content users see, using only U.S. user data.
• Implementing ongoing cybersecurity and software assurance protocols, with regular audits to maintain compliance with recognised standards.

These measures are designed to show that user data and content recommendations are protected from foreign influence or misuse, a key concern that triggered the U.S. government’s push for the deal.

Impact on U.S. Users and the Platform

For most TikTok users, the experience of using the app, scrolling videos, uploading content and engaging with trends shouldn’t change. TikTok has stated that the platform will “feel the same” to users day-to-day under the new structure.

Behind the scenes, however, the way data is handled, secured and overseen is now under U.S.-based control. The joint venture will also manage content moderation, privacy safeguards and algorithm safeguards, which aims to reduce fears that Chinese authorities could access sensitive American user data.

Reaction and Future Outlook

Industry analysts see this as a major milestone, not just for TikTok, but also for how global tech companies may navigate national security laws in different markets. Oracle’s role strengthens its position in secure cloud services and demonstrates how tech infrastructure companies can partner with social platforms on data governance.

There are still questions about how the new structure will affect international operations, advertising strategies and marketing tools on the platform. And while the deal averts a ban, discussions around data privacy and platform influence continue among policymakers, marketers and users alike.