TikTok’s New United States Deal, Explained

If you’ve lost track of how many times TikTok has been close to being banned in the United States, you’re not alone. It’s been years of controversy, lawsuits, extensions, and half-solutions.

This week, TikTok announced a deal that finally puts some structure around its future in the U.S. It doesn’t answer every question, but it does close a long chapter of uncertainty.

Keep reading for a breakdown of what happened, what’s still unresolved, and what things mean going forward.

Q: What did TikTok announce?

TikTok said it will create a new U.S.-based TikTok entity that will be owned primarily by non-Chinese investors, according to The New York Times.

The new ownership group is led by Oracle, Silver Lake, and MGX, along with several other investment firms, including the personal investment office of Michael Dell. Together, non-Chinese investors will control more than 80% of the U.S. business. ByteDance, TikTok’s Chinese parent company, will keep a minority stake at just under 20%.

Adam Presser, who previously led operations at TikTok, will become CEO of the U.S. entity.

Q: Why did this deal need to happen at all?

Without it, TikTok was headed for a ban.

As a refresher, in April 2024, the U.S. Senate moved swiftly to advance a proposed bill requiring TikTok to be sold into U.S. ownership due to concerns over national security, or the app would be banned. President Biden signed the bill, leading TikTok to file a suit against the federal government, challenging the constitutionality of the ban. 

In January 2025, TikTok actually went dark voluntarily in the U.S. mere hours before the deadline, cutting off access to tens of millions of users. 

After taking office again, President Trump delayed enforcement of the law multiple times, pushing TikTok to land on an ownership deal instead. This agreement is the result of that pressure.

Q: What problem is the deal supposed to solve?

At its core, the TikTok controversy has always been about national security.

United States lawmakers and administration officials had concerns that Chinese authorities could force ByteDance to hand over U.S. user data or influence public opinion towards Beijing’s interests by manipulating the algorithm that populates users’ feeds.

As The New York Times put it, the goal of the deal is to loosen TikTok’s ties to China while keeping the app available in the American market.

Q: Does ByteDance still have a role?

Yes, and this is where things get complicated.

ByteDance will keep its minority ownership stake and, more notably, will continue to license TikTok’s recommendation algorithm to the new U.S. company. That algorithm will be retrained and updated using U.S. user data, according to AP News.

Critics say this may fall short of what the 2024 law actually required. The law calls for an end to any “operational relationship” between ByteDance and TikTok’s U.S. operations, including cooperation tied to the algorithm itself.

As per the AP News article, the law explicitly prohibits cooperation related to content recommendation systems, leaving open the question of whether this structure will hold up long-term.

Q: Will users notice any changes?

Probably not, at least not for now. Creators who once spoke out to save TikTok told The New York Times they’ve grown tired of the constant uncertainty and expect the app to feel largely the same. There’s no clear signal that feeds, formats, or day-to-day usage will change in any obvious way.

There are concerns about moderation and political influence, especially given that some of the new investors have ties to President Trump. For now, though, those concerns are theoretical, not something users are seeing play out in real time.

Q: So is TikTok “safe” now?

Safer, yes. Settled? Not exactly. This deal removes the immediate risk of TikTok disappearing overnight. It does not remove political scrutiny, regulatory pressure, or debate over who ultimately controls the platform.

As a former Biden administration adviser told AP News, “We’ve gone round and round and ended up not too far from where we started.”

That’s probably the most honest summary.

Q: What does this mean for brands on TikTok?

From a marketing standpoint, not much changes tomorrow. The app is still operating, and it’s one of the most popular social media apps out there.

If this app is working for your business, there’s no reason to walk away. But it’s a great reminder that platform stability is never guaranteed.

Q: Should brands do anything differently right now?

No, it’s just a good time to be strategic. To step back and ask:

• Are we too dependent on one platform?
• Are we repurposing short-form content elsewhere?
• Are we investing in owned channels like email, SMS, and our website?
• If an algorithm or policy changed suddenly, would we feel it immediately?

TikTok avoided a ban, but the last six years have shown how quickly the ground can shift for reasons bigger than our control. 

The bottom line

This deal is a pause, not a finish line. TikTok remains a powerful place for reach, storytelling, and discovery. It’s also a platform shaped by politics and regulation. Use it, just don’t rely on it alone.

Looking for guidance on the future of social media marketing? Call, DM, or email us at sbellem@brookstone.com to get started. Our team is here to help you build strategies that evolve alongside platform changes and updates.