TikTok's Big Change: What's Happening in the U. S. ?

Deal Struck Amid Security Concerns

TikTok, the popular video-sharing app owned by China's ByteDance, has been under scrutiny by the U.S. government over concerns about user data security. A significant deal has been reached:

• American investors, including Oracle, Silver Lake, and MGX, will control a major stake in TikTok's U.S. operations.
• ByteDance will retain a smaller share.

This agreement follows years of negotiations and legal battles.

Government Push and Timeline

The U.S. government has been advocating for this change since 2020, demanding that TikTok's U.S. operations be sold to an American company.

• Oracle will take a central role in ensuring data security by auditing and enforcing compliance with national security terms.
• The deal was initially set to close in January 2026, but the timeline may now accelerate.

Transition for U.S. Users

Once finalized, U.S. users may need to transition to a new platform. However, the app won't vanish immediately, and details about the new platform remain unclear.

TikTok has consistently denied being a security threat, asserting that data stored in the U.S. complies with all local laws.

Historical Context

The controversy began when former President Trump signed an executive order to ban transactions with ByteDance. His administration later attempted to force the sale of TikTok's U.S. operations.

• Several companies, including Microsoft and Walmart, expressed interest.
• A U.S. judge temporarily blocked the ban, allowing TikTok to continue operating.

Recent Developments

In 2024, the situation grew more complex:

• Trump proposed a 50-50 ownership arrangement between ByteDance and a U.S. company.
• Multiple groups showed interest, such as The People's Bid for TikTok and the American Investor Consortium.
• Other potential buyers included Amazon, Microsoft, and former U.S. Treasury Secretary Steven Mnuchin.