TikTok strikes deal to avoid a US ban

TikTok’s years-long standoff with Washington has ended not with a ban(g), but with a firm handshake.

Late last week, the Chinese-owned short-form social media app finalized a $14 billion deal to create a new American entity, avoiding the looming threat of a US ban that’s been in the works for years.

How we got here: The TikTok ban saga began in mid-2020, when President Trump’s administration sought to force a sale of TikTok’s US operations to an American buyer. Courts later blocked that effort, allowing the app to keep operating.

• Momentum towards a ban resumed in April 2024 when President Biden signed a Congress-approved bill that would bar TikTok’s app from the US without a sale, prompting another lawsuit extending the standoff.
• But in early 2025, President Trump had a change of heart and sought to achieve a split ownership arrangement between ByteDance and US owners.

That's exactly what happened

Under the new deal, ByteDance will retain 19.9% ownership of TikTok’s US operations, while managing investors Oracle, Silver Lake, and MGX will split 45% of the company. Most of the remaining shares of US TikTok will be owned by ByteDance investors.

TikTok exec Adam Presser will lead the new US-based app as CEO alongside a seven-member, majority-American board of directors.

• ByteDance will still own its valuable content algorithm, but plans to lease a copy to the owners of TikTok’s US entity.
• The Chinese tech giant won’t have access to information about TikTok’s American users, or retain any influence over the US algorithm.

Looking ahead…For most US users, the app itself likely won’t feel any different, at least at first. The main difference thus far is updated terms and conditions expanding TikTok’s ability to target ads, and to track locations of users who grant permission.