TikTok has taken a significant step towards reshaping its future in the United States by signing a deal that will lead to the establishment of a joint venture primarily controlled by American investors. This agreement, which was reported by Axios, is set to close on January 22, 2026. Under the terms of this arrangement, U.S. investors will gain full control over TikTok’s algorithm and decision-making processes related to the app.
In an internal memo shared by TikTok CEO Shou Chew, it was noted that while the preliminary deal is in place, there remains “more work to be done” before the closing date. The joint venture will see partial ownership of TikTok’s U.S. operations transferred to prominent firms including Oracle Corporation, Silver Lake, and MGX.
Pursuant to the Executive Order signed by U.S. President Donald J. Trump on September 25, 2025, the agreements specify that the U.S. joint venture will be majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and U.S. national security.
TikTok CEO Shou Chew
This development marks the culmination of a protracted process initiated by a congressional bill that mandated the sale of TikTok’s U.S. business. The legislation stipulated that failure to reach an agreement would result in a nationwide ban on the app. Moreover, it granted U.S. President Donald Trump the authority to oversee and approve the terms of any sale. Although TikTok faced a temporary ban in the U.S., Trump extended the deadline for a sale multiple times through executive orders.
What’s changing for TikTok users
For TikTok users in the U.S., this deal brings with it a wave of potential changes. One of the primary concerns raised by the U.S. government has been the influence of TikTok’s algorithm on public opinion, given its ownership by the Chinese company ByteDance. However, with the new joint venture, the control of the TikTok algorithm will shift, addressing these concerns head-on.
According to Chew’s memo, the new entity will retrain the content recommendation algorithm using U.S. user data, ensuring that the content feed remains free from external manipulation. Furthermore, the joint venture will hold ultimate decision-making authority over content moderation and related policies within the United States. As a result, U.S. users may notice changes in their TikTok feeds as early as next year, should the deal proceed as planned.
Additionally, the agreement stipulates that U.S. user data will be stored in a “trusted and secure cloud environment” within the United States, managed by Oracle, further enhancing data security and privacy for American users.
What comes next for the planned TikTok sale
As the closing date for TikTok’s sale approaches, several critical questions loom. Experts caution that the Chinese government could potentially block the deal from finalizing. While President Trump previously indicated that Chinese President Xi Jinping had approved the agreement, this has yet to be officially confirmed by China. Furthermore, it remains uncertain whether the finalized deal complies with the stipulations outlined in the congressional bill banning TikTok.
If all goes according to plan, U.S. TikTok users may soon experience a transformed algorithm, marking a new chapter for the platform in the American market.
