US Investors to Run TikTok’s US Operations

U.S. President Donald Trump has approved a restructuring plan for TikTok’s operations in the United States, addressing long-standing national security concerns over its Chinese ownership.

TikTok, owned by ByteDance, has more than 170 million U.S. users and is widely used not only for entertainment but also by creators for income and by businesses for advertising. However, fears that user data could be accessed by the Chinese government or exploited for propaganda triggered growing scrutiny. These concerns led to a short-lived ban earlier this year, later postponed until a divestiture plan was finalized.

Under the new framework:

A U.S.-based joint venture will now run TikTok in America.

Ownership will be majority U.S.-controlled, with ByteDance holding less than 20%.

The divestiture also includes Lemon8, CapCut, and related apps.

All algorithms, code, and moderation systems will be fully controlled in the U.S.

U.S. user data must be stored in an American-run cloud environment.

Oracle, along with investors like Andreessen Horowitz and Silver Lake Management, will oversee data security, algorithms, and operations.

TikTok’s algorithms will be retrained using U.S.-approved data only, under constant monitoring by designated security partners. Reports suggest U.S. users will eventually transition to a new app replicating the recommendation system, ensuring no foreign influence.

The global TikTok platform, however, remains under ByteDance’s control for non-U.S. users. Experts warn that robust trust and verification measures must be implemented to comply with the Take It Down Act, or the platform risks facing further violations.