Is TikTok cutting off all ties to parent company ByteDance? What we know as new deal finalized to smoothly operate in the US

Chinese social media giant TikTok, a platform for sharing short-form videos, recently closed a major deal that will allow it to continue its American operations smoothly, according to media outlet Pop Base.

While an agreement has been finalized regarding the media platform operating smoothly in the US, the majority of the app's American business will be taken care of by American-owned joint ventures.

Pop Base

@PopBase

TikTok has officially finalized a deal to continue U.S. operations. The app’s U.S. business will operate under a majority American-owned joint venture.

According to Bloomberg, the joint venture was formed by TikTok and its parent company, ByteDance, to allow the platform's US business to be owned by three non-Chinese investors, including Oracle, Silver Lake Management LLC, and MGX.

However, the deal also dictates that parent company ByteDance will have to provide its content algorithm to the media platform's US business entity, which will help retrain the new algorithm on American user data.

As per Bloomberg, the joint venture deal was first announced in September 2025, to acknowledge security issues and to stay away from a possible ban on the app. However, as the media platform undergoes some crucial structural separation with the three US entities, Oracle, MGX, and Silver Lake Management LLC running the American business operations, TikTok will not cut off all ties with its parent company, ByteDance.

Donald Trump thanked Xi Jinping for approving the joint venture deal

With the new joint venture deal being finalized for TikTok to continue operating in the US with American entities running its operations, President Donald Trump took the opportunity to thank the Chinese President Xi Jinping for "working with us and, ultimately, approving the deal."

Trump took to his Truth Social platform and said:

"He could have gone the other way, but didn't, and is appreciated for his decision."

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Trump also added that he was "so happy to have helped in saving" the media platform. According to CNN, Adam Presser, who was previously operations head of the media platform, will be running the new US joint venture. A board has been formed that will supervise the entire Joint Venture effort.

As per CNN, the board will consist of members, including Shou Chew, US TikTok CEO, Kenneth Glueck of Oracle, representatives of Silver Lake Management LLC, and MGX.

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