One of the first things US President Donald Trump did when he took office for his second term was delay the ban of TikTok in the US . He then tried to push for a deal with China that would see ByteDance sell the TikTok US arm so that it would be under US control. For a while, it looked like the deal would never come to pass. But never say never, because it looks like the TikTok US saga is done and the deal is closed .
TikTok US deal is done
According to the announcement, the deal will see American entities in control with an 80.1% stake in TikTok US . ByteDance, TikTok’s Chinese parent company, keeps just 19.9% of the company. Oracle, Silver Lake, and MGX each hold a 15% share as the managing investors.
According to TikTok, the joint venture will operate under safeguards that protect national security. This includes comprehensive data protections, algorithm security, and content moderation. Oracle is also expected to handle the storage and security of US user data. Also, the algorithm that TikTok relies on to feed you videos based on your interests will be retrained and updated using data from American users only.
Trump’s been flip-flopping on TikTok for years. Back in 2020 during his first term, he tried to ban it. Then he changed his tune and signed executive orders to keep it running after it briefly went dark in January 2025. This was because the app was reportedly instrumental in landing him his second term.
What about the algorithm?
This is where we think it gets a little tricky. You see, TikTok’s algorithm is what the US really wants. China previously said the algorithm had to stay under Chinese control by law due to it being designated as a key piece of technology.
Under this deal, ByteDance will license the algorithm to the US entity for retraining . According to a 2024 US law that was passed, it specifically said any TikTok divestment must cut ties with ByteDance. Especially regarding the algorithm. The law says there can’t be “any cooperation with respect to the operation of a content recommendation algorithm” between ByteDance and the new American owners.
This leaves us wondering how the new and retrained algorithm will work. Will it work the same as before? Will it be better or worse at recommendations? After all, TikTok’s algorithm was what made it so damn addictive to begin with. Changing it could either have positive or negative consequences.
Only time will tell if these changes are for the better. But at least for now, the TikTok US saga is done once and for all. And maybe five or ten years from now, we’ll look back and wonder was it all worth it just for a single app.
