TikTok, the popular video-sharing app owned by Chinese company ByteDance, is facing a major change in the United States. For years, U.S. officials have expressed concerns that TikTok could allow the Chinese government access to American users’ data. This worry has led to legal battles, discussions of banning the app, and ongoing negotiations about the app’s ownership.
Recently, President Donald Trump signed an executive order allowing TikTok’s U.S. operations to be sold to American investors. This move comes after months of uncertainty in which U.S. users faced temporary outages and delays. The deal is estimated to value TikTok’s U.S. business at around $14 billion, though some experts suggest the platform could reach a value of up to $60 billion if the sale goes through successfully.
The U.S. operations are expected to be managed by a consortium of investors including Oracle, Silver Lake, and Andreessen Horowitz, who will collectively hold an 80% stake. ByteDance will retain the remaining shares. The new board of directors will be mostly American, with one member appointed by the U.S. government to oversee safety and compliance.
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Oracle’s role is especially critical. The company already provides cloud services for TikTok and will manage the U.S. version of the algorithm. Oracle will retrain the algorithm to ensure that ByteDance has no access to American user data or influence over the app’s operations.
What This Means for TikTok Users
For TikTok users in the U.S., the upcoming change will be significant. Reports indicate that TikTok as it currently exists in the U.S. may be discontinued. Users will need to move to a new platform managed by American investors. While exact details of the new app remain unclear, it will operate separately from TikTok’s global version.
Millions of Americans rely on TikTok for entertainment, social connections, and content creation. The U.S.-based management team will focus on keeping the app safe while protecting user data. The new platform will maintain core features while ensuring compliance with U.S. security standards.
In addition to Oracle, other technology and investment leaders may be involved. Companies such as Dell Technologies and prominent individuals from the investment world are expected to have a role in shaping the platform’s U.S. operations. This collaboration is designed to secure user information and keep the app functioning smoothly for millions of Americans.
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A Long Road to Change
The process leading to this sale has been long and complex. In August 2020, the U.S. government attempted to block transactions with ByteDance. Soon after, multiple American companies including Microsoft, Walmart, and Oracle were considered as potential buyers for TikTok’s U.S. operations.
Legal challenges temporarily prevented the ban, allowing TikTok to continue operating while arguing that the restrictions violated Americans’ rights. The company consistently maintained that it did not pose a security threat and that its data practices complied with U.S. laws.
Over the next few years, negotiations continued under different administrations. In addition to legal battles, discussions involved both U.S. and Chinese officials, with the goal of protecting user data while allowing the app to remain accessible in the United States. A framework for sale has now been approved, ensuring that ByteDance cannot access U.S. user information and that the algorithm will be fully managed in America.
Millions of users in the U.S. will soon face a transition to the new platform, marking a major shift in how TikTok operates domestically. The new arrangement brings American investors into a central role while addressing long-standing national security concerns.