Laura Bicker
China correspondent

This deal was widely expected so it doesn’t take the tricky relationship between the world's two biggest economies that much further.

What it does tell us is that the two countries are willing to talk and can do a deal if they want to.

Both sides will spin this as a win. It underlines the appeal Chinese tech, and Beijing's influence, while Donald Trump can tout it as proof of his deal-making skills.

The tentative truce Trump and Chinese leader Xi Jinping reached in October in South Korea appears to be holding - for now.

Let’s see if that will continue until their next expected meeting in April here in China.

Lily Jamali
North America Technology Correspondent

As we've been reporting, Cloud computing giant Oracle will play a central role in the new joint venture finalised on Thursday.

It will be responsible for securing the data of TikTok’s 200 million American users, according to the joint venture.

It will also oversee the retraining of TikTok’s powerful content recommendation algorithm, which influences what those users see and experience on the app. Oracle was co-founded by Larry Ellison, a political ally and friend of US President Donald Trump’s.

He was the world’s richest person, besting Elon Musk for a brief moment last year.

Ellison has made plenty of news outside of TikTok of late. He has been pursuing American media giant Warner Brothers Discovery, with a hostile bid against Netflix. And last year, he closed on a deal that puts the Ellison family in charge of another major media company, Paramount. (The BBC is a partner of Paramount’s CBS News.)

Suranjana Tewari
Asia Business Correspondent

We already knew about the basic structure of the deal through White House announcements, comments from the US President and the Chinese government - that US investors will run the company with TikTok's parent company ByteDance keeping a minority stake.

But there are a few details that have been confirmed with the closing of the deal.

Until now, we didn't know the exact terms on which the US business would operate.

TikTok has now confirmed that a new US entity has been legally created to run the app and meet American regulations.

For the first time, we have more information on how US user data will be protected - the company has given specific details on cybersecurity and data protection rules that the new venture will follow.

We also now know that the powerful recommendation algorithm will be handled separately in the US.

The leadership of the new US company has been clearly defined for the first time too.

Finally, the announcement includes information about how the changes go beyond TikTok.

The same rules will apply to other ByteDance apps like CapCut and Lemon8 that operate in the US.

Critics of Trump's push for US ownership of TikTok have said that the new arrangement doesn't fully adhere to the the Biden-era national security law passed in April 2024.

That law, upheld by the Supreme Court in early 2025, forced a spinoff of TikTok over concerns that the app might share user data with the Chinese government – a claim ByteDance has always denied.

“There remains a disconnect between the agreement and the spirit of what the statute required,” Brett Freedman, who served as chief of staff of the national security division at the Department of Justice during the Biden administration, told the Financial Times, external.

Other potential investors previously have told the BBC that they wanted to see TikTok operate without any of its Chinese technology, including its powerful recommendation algorithm.

Under the law, ByteDance is not allowed to have an operational relationship with US TikTok. But, according to today's announcement, TikTok says that the joint venture complies with the executive order signed by Trump in September.

Trump has said he opposed the ban, despite supporting one in his first term as president.

On Saturday 18 January 2025, the app went dark in the US when the national security law came into effect. But a day later, TikTok resumed services to US users after then President-elect Donald Trump said he would issue an executive order to give the app a reprieve.

Suranjana Tewari
Asia Business Correspondent

The announcement confirms a big change to how TikTok's algorithm will work in the US.

It will be run separately from the global app and will be retrained on US user data only.

Experts say that less diverse data will affect users - it might mean a slower, lighter app that operates differently. The algorithm might not recommend content as successfully as the current platform, and so for users, the experience may drift away from the global app.

The data will also be stored and operated inside the US, and because of the licensing setup that TikTok's parent Byetdance have agreed to, Chinese engineers won't have day-to-day control over how the algorithm is run, updated or secured.

The recommendation algorithm is Tiktok's crown jewel - it's why the app feels so addictive and it's what makes creators and posts go viral.

The deal doesn't kill the app but it does change the US version and the powerful system behind it that decides what billions of people see.

Fresh off the confirmation of the deal, it remains unclear how TikTok will look for millions of user in the US. The BBC's Asia business correspondent Suranjana Tewari tells us more:

The platform's new ownership highlighted its government-mandated priorities, such as securing US user data, apps and the algorithm "through comprehensive data privacy and cybersecurity measures".

They aim to safeguard the US content ecosystem "through robust trust and safety policies and content moderation," promising to ensure continuous accountability through transparency reporting and third-party certifications.

Here's a bit more on those priorities, per the statement:

Data Protection: US user data will be protected by USDS Joint Venture in Oracle's secure US cloud environment. The Joint Venture will operate a comprehensive data privacy and cybersecurity program that is audited and certified by third party cybersecurity experts. The program will adhere to major industry standards, including the National Institute of Standards and Technology (NIST) CSF and 800-53 and ISO 27001 as well as the Cybersecurity & Infrastructure Security Agency (CISA) Security Requirements for Restricted Transactions.

Algorithm Security: The Joint Venture will retrain, test, and update the content recommendation algorithm on US user data. The content recommendation algorithm will be secured in Oracle's US cloud environment.

Software Assurance: The Joint Venture will secure US apps through software assurance protocols, and review and validate source code on an ongoing basis, assisted by its Trusted Security Partner, Oracle.

Trust & Safety: The Joint Venture will safeguard the US content ecosystem and have decision-making authority for trust and safety policies and content moderation.

TikTok says the joint venture will operate as an independent entity governed by a seven-member, majority-American board of directors.

Here's the list of board of directors:

• Shou Chew, the CEO of TikTok who leads the company's global businesses and strategy
• Timothy Dattels, a senior advisor to TPG Global and former partner and chairman of TPG Asia, and a member of the firm’s Executive Committee
• Mark Dooley, the managing director at Susquehanna International Group
• Egon Durban, the co-CEO of Silver Lake, whose portfolio including Dell Technologies, Qualtrics, TKO Group, Unity and Waymo.
• Raul Fernandez, president and CEO of DXC Technology
• Kenneth Glueck of Oracle, where he advises the CEO on global strategy, business, M&A, technology, policy, and regulatory matters
• David Scott, the chief strategy and safety officer at MGX, a state-owned investment firm in the UAE

Adam Presser, formerly of WarnerMedia, was appointed today as the CEO of the USDS Joint Venture and is set to "secure US user data, apps, and the algorithm, while driving business growth for TikTok, CapCut, and additional apps and websites in the US".

He will be joined by Will Farrell, who will serve as the chief security officer and oversee the Joint Venture's "comprehensive data privacy and cybersecurity program."

There are three managing investors for TikTok's US operations, each holding a 15% stake:

• Silver Lake - an American tech investment platform that says it holds approximately $116bn in assets (£85.9bn)
• Oracle - the US software giant that lists Larry Ellison as a co-founder, the world's second richest person last year according to Forbes
• MGX - a firm "born in the UAE" that chiefly invests in AI and tech that enables the "AI fabric of the global economy"

ByteDance, the Chinese company, continues to hold a 19.9% stake in the joint venture.

The remaining 35.1% of the company is owned by: the Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Meritt Way, Via Nova, Virgo LI, and NJJ Capital.

For a little more context on how this deal came about, remember that last year the US Supreme Court upheld a law passed in April 2024 that banned TikTok unless its Chinese-owned parent company ByteDance sold its US division.

TikTok went dark for 12-14 hours in January 2025 after the law came into effect, before US President Donald Trump intervened and issued a 75-day postponement.

The US Justice Department had said TikTok's access to data on American users posed "a national-security threat of immense depth and scale".

But ByteDance repeatedly insisted that its US operations were fully independent and no data had been shared with the Chinese government.

The company also argued that the ban would violate free speech protections for its 170 million US users.

In September, Trump announced that a deal has been made between the US and China to keep TikTok running in the US and that he had the blessing of Chinese President Xi Jinping.

At the heart of the years-long tussle is TikTok's algorithm - the "secret sauce" that recommends content to users based on their preferences and behaviours.

The announcement says that the new business "will retrain, test, and update the content recommendation algorithm on US user data".

And that it will be secured in "Oracle's US cloud environment."

Here's what we know so far about the deal:

• TikTok says a majority stake in its US operations has been sold to investors including Silver Lake, Oracle and MGX (which will each hold 15%). Other investors include: Dell Family Office and Vastemere Strategic Investments
• It would enable more than 200 million Americans and 7.5 million businesses to "continue to discover, create, and thrive as part of TikTok's vibrant global community and experience", the company's statement said
• This deal is meant to loosen China's ownership over the social media platform. TikTok is owned by Chinese company ByteDance
• The White House had threatened to ban the app unless it was sold to non-Chinese entities, citing national security concerns
• Last month, ByteDance signed a series of deals with American and global investors to keep its business running in the US

The announcement says the deal is "in compliance with the Executive Order signed by President Trump on September 25, 2025".

It adds that the "majority American owned Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users".

This means that more than 200 million Americans and 7.5 million businesses will be able continue to use the short-video platform.

The hugely popular short-video app was due to be banned in the US in January 2025 if its Chinese owner, ByteDance, failed to sell its operations in the country to US investors.

US President Donald Trump repeatedly postponed enforcement of that law, which was signed into law by his predecessor Joe Biden.

Lawmakers said at the time that ByteDance's links to the Chinese government threatened national security, and expressed fears Beijing could force the company to hand over the data of US users. Both TikTok and ByteDance have consistently denied the claim.

Tiktok has announced that it has sold its majority stake in the hugely popular social platform.

Majority American ownership for the app has been established, mostly by tech titans Oracle and Silver Lake, in compliance with US President Donald Trump's executive order in September - ending the years-long legal saga and a potential ban of the app.

Stick with us and we'll bring you the latest updates.