Who Is the New Owner of TikTok? Inside the $5BN Deal That Saved the App in the US

The future of TikTok in America has finally been settled, ending months of intense speculation and legal battles. A massive $5 billion (£3.70 billion) agreement has shifted control of the platform, reportedly securing its place on millions of phones across the country. However, whispers of a 'rogue algorithm' suggest that this deal may have been driven by more than just financial interests.

An announcement from the firm on Thursday confirmed that officials in Washington and Beijing have cleared the path for TikTok to stay active in America. This move concludes a lengthy conflict centred on resolving the country's various safety and intelligence apprehensions.

The New Guardians of Data

Conditions set by the Trump government require a fresh American firm, led by stakeholders aligned with domestic interests, to run the famous media platform. Oracle—a major cloud technology provider with deep ties to the administration—will be monitoring how the software handles information and develops its systems for local users, continuing its long-standing role as the guardian of that data.

The arrangement was designed to satisfy a 2024 statute. At the start of his second term, President Trump paused the execution of this law for twelve months to prevent the app from being pulled from the American market while safety issues were addressed. Through a succession of official decrees, he repeatedly pushed the closing date back until the final conditions were met this Thursday.

Despite persistent warnings from policy makers and defence hardliners, the President's team and company backers moved the sale forward. These critics fear that the Chinese government could exert pressure on the local operation through ByteDance, which retains a significant minority share in the enterprise.

Safeguards and Software Assurances

In a message sent to staff to share the update, TikTok CEO Shou Chew explained that the new partnership—which is mostly held by US interests—is set to function within specific boundaries. He noted that these measures are intended to uphold national safety by focusing on comprehensive information privacy, system integrity, and content monitoring for local members.

The newly formed business will be headed by Adam Presser, who previously served as Chew's second-in-command. The board of directors will comprise Chew, Oracle's Ken Glueck, and various stakeholders. As for the equity split, Oracle, Silver Lake, and the Abu Dhabi firm MGX are each set to hold 15% of the company, with the remaining 30% or so remaining with current backers.

The investment pool also features Revolution—the firm where Vice President JD Vance previously worked—and the private investment office of Michael Dell, the founder of Dell Technologies. Before his 2022 Senate bid, Vance had a short stint as a venture capitalist at the organisation established by Steve Case, the man who co-founded AOL.

A 'Tremendous Fee' and Rapid Growth

'I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,' Trump said in a post on Truth Social Thursday.

As part of the settlement, the investment group is paying the American government several billion dollars, fulfilling what Trump once termed a 'tremendous fee-plus'. This news arrives as TikTok's reach continues to expand; the company now reports 200 million (£148.16 million) users in the US, surpassing its previous figure of 170 million (£125.94 million), according to the Wall Street Journal.

Earlier that day, the President used his own network, Truth Social, to highlight his popularity on TikTok. He argued that the level of engagement he receives there significantly outpaces what he sees on Instagram, which is owned by the tech giant Meta.