Reshaping TikTok’s U.S. Operations: A New Era with American Investors
In a significant move, TikTok’s U.S. operations are set to undergo a major transformation. A new agreement has been signed, allowing a consortium primarily composed of American investors to take control of the app’s U.S. operations. Key players in this group include Oracle, the renowned software company led by Larry Ellison, known for his strong ties to former President Trump. Learn more about Larry Ellison’s involvement.
The newly established U.S. firm will oversee TikTok’s algorithm and the management of American user data. The content moderation policies will be set by this investor-controlled group, ensuring that the app’s U.S. operations align with American interests. However, ByteDance, TikTok’s parent company based in Beijing, will retain ownership of the core algorithm, albeit with oversight from American auditors.
Georgetown University law and technology professor Anupam Chander commented on the shift, stating, “With an American majority running the content moderation, concerns about foreign propaganda seem to have been alleviated.” However, Chander also highlighted potential censorship issues, suggesting the possibility that “the American TikTok might end up censoring or hiding speech that is permissible on the global TikTok platform.”
The ownership structure of the new TikTok entity reveals a diverse group of stakeholders. Oracle, Silver Lake, and the UAE-backed investment firm MGX will collectively hold 45% of the U.S. operations. Meanwhile, existing ByteDance investors will own about a third, and ByteDance itself will maintain a 20% stake.
A seven-member board, predominantly American, will guide the new entity’s course. This development marks the culmination of over five years of escalating pressure from Washington, where concerns about TikTok’s links to China had led Congress to pass a law in 2024 mandating the app’s sale or risk being banned.
The Supreme Court upheld this law in early 2025, although a series of executive actions by Trump temporarily delayed its enforcement. Despite the sale, some experts, like former Treasury official Jim Secreto, argue that the deal falls short of the clean break from ByteDance intended by Congress.
Secreto remarked, “The law requires a clean break from ByteDance. This structure doesn’t meet that standard.” The White House has not yet commented on the deal.
This new arrangement presents a unique scenario for TikTok, with one version of the app under American oversight and another, operated by ByteDance, available globally. This shift could redefine the landscape of the app’s operation and impact its user base of approximately 2 billion worldwide, with less than 10% in the U.S.
For Larry Ellison, this represents a significant triumph, further solidifying his influence in American media and entertainment. This comes on the heels of his involvement with Paramount Skydance, a deal completed earlier this year. Ellison’s son, David, is also making waves with a bid to take over Warner Bros. Discovery, competing with Netflix’s interests.
