After more than four years of scrutiny, TikTok has officially reached a deal with the United States government, bringing an end to a saga of legal and political battles over the app’s future in the U.S. ICYMI, TikTok and its Chinese-owned parent company, ByteDance, were at the center of an ownership battle, with U.S. lawmakers citing concerns that American user data could be accessed by foreign authorities. The negotiations even resulted in a brief shutdown of the app’s U.S. operations in 2025 — a day most Gen Zers won’t soon forget. But now, all that back and forth seems to be behind us… but while lies ahead remains to be seen.
The U.S. TikTok deal officially closed on Jan. 22. (You might have known this based on a number of news stories covering the deal, or suspected it based on the updated terms and conditions message you were met with when you opened the app on Jan. 23.) The deal ensures that TikTok’s operations are managed by a majority-American board. Because the news of the deal is so recent, many details about how it will change the app or affect everyday users have not yet been fully disclosed. While the agreement is meant to address some of the most crucial arguments made by the U.S. government, there is still uncertainty surrounding what TikTok will look like for regular, everyday users moving forward. Here’s what’s known so far.
So, who actually owns TikTok now?
The newly formed TikTok USDS Joint Venture LLC is backed by big companies with significant influence in the U.S. economy, including Oracle (a U.S. tech firm), Silver Lake (a U.S. investment firm), and MGX (an Emirati AI investment company). Together, this group of companies now own 80.1% of stakes of TikTok U.S., while ByteDance holds the remaining 19.9%.
Will the deal change the app experience for American users?
It appears those involved in the deal are trying to make the transition smooth for users (for example, it’s not likely that users will have to download a new app). However, the same cannot be said for the famous For You Page. Under Oracle’s guidance, American users may notice some changes in the app’s terms and conditions — including, new geolocation policies and a limit of generative AI usage on the app. In addition to worries about the new term and conditions, many users have expressed concerns that the new ownership will lead to higher levels of censorship and a loss of the authenticity the app conveyed. The answers to these concerns are unclear, given how recent the deal is and how much is yet to be discovered as changes continue to roll out.