Fri, 23 Jan 2026

Fri, 23 Jan 2026 TikTok closes deal to split US app from global business

The app was due to be banned in the US a year ago if its Chinese owner didn't sell its business in America.

* TikTok has reached a deal with American investors to continue operating in the US.
* The deal was made after years of tussle between Washington and Beijing over national security concerns.
* TikTok's Chinese owner, ByteDance, will retain a 19.9% stake in the business.
* A new joint venture, TikTok USDS Joint Venture LLC, has been formed to operate as an independent entity.
* The joint venture will be governed by a seven-member board of directors with a majority of American members.
* Oracle will oversee data security and retrain the app's algorithm on US user data.
* ByteDance had refused to part with its prized formula, but Beijing allowed it to license the algorithm to a US company owner.
* The impact of this shift is unclear, but experts say it may result in a slower or lighter app that operates differently from the global version.
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