The long-anticipated TikTok deal has been finalized, ensuring the video-sharing platform can continue operating in the United States after years of legal and political uncertainty. The agreement creates a new TikTok U.S. joint venture backed by investors including Oracle, Silver Lake and Abu Dhabi–based MGX. While the deal prevents an immediate shutdown, it leaves open questions about user experience, governance and whether national security concerns have been fully addressed.

Why the TikTok Deal Was Needed

The TikTok deal stems from a 2024 U.S. law passed with bipartisan support and signed by President Joe Biden, requiring TikTok to find a non-Chinese owner or face a nationwide ban. ByteDance, TikTok’s China-based parent company, was given until January 2025 to divest.

TikTok briefly went dark as the deadline approached. On his first day back in office, President Donald Trump signed an executive order allowing the app to continue operating while negotiations continued. That deadline was extended multiple times until the TikTok deal was reached.

How the TikTok Experience May Change

TikTok says U.S. users will continue using the same app, with no new download required. However, how feeds will change under the TikTok deal remains unclear.

The recommendation algorithm used in the U.S. will be licensed from ByteDance and retrained on U.S. user data. Analysts say this could subtly alter what users see, with trends and dominant content becoming more U.S.-centric, even as global content continues to appear with different rankings.

Interoperability between the U.S. operation and ByteDance’s global platform has not been fully explained, raising questions about how a unified TikTok experience will be maintained.

Updated Terms of Service Under the TikTok Deal

As part of the TikTok deal, the platform has introduced updated Terms of Service. Users retain ownership of their content, but TikTok may use that content to operate or improve the platform, subject to user settings.

Children under 13 will be limited to an “Under 13 Experience.” Users are also responsible for labeling AI-generated content and ensuring compliance with platform rules.

Political and Corporate Ties Raise Concerns

The TikTok deal brings in major U.S. investors, including Oracle co-founder Larry Ellison, whose long-standing ties to President Trump have drawn attention. Ellison has previously been involved in efforts during Trump’s first term to push ByteDance toward a sale.

Vice President JD Vance played a role in negotiations, alongside Trump, during talks with Chinese officials. These political connections have raised concerns among some users about content moderation and whether feeds could tilt toward certain viewpoints.

Security Questions Remain Unresolved

Despite the TikTok deal, some of the original security concerns cited by lawmakers remain unresolved. The 2024 law prohibits cooperation with ByteDance on operating a content recommendation algorithm, yet ByteDance will license the algorithm to the U.S. entity.

How this arrangement complies with the law is unclear, particularly given fears that the algorithm could be used to influence content or access user data.

How Users and Creators Are Reacting

For many creators and businesses, the TikTok deal brings relief. Skip Chapman, whose New Jersey-based deodorant brand relies heavily on TikTok Shop, said he is glad the threat of a ban has eased, though he worries e-commerce features could be deprioritized.

Restaurant owner Vanessa Barreat, who uses TikTok to promote her Las Vegas business, described her response as cautious but calm, saying the platform’s impact on underrepresented voices does not disappear overnight.

The TikTok deal keeps the platform online in the U.S. and ends years of uncertainty for users, creators and businesses. However, changes to the algorithm, unanswered legal questions and lingering security concerns mean the long-term impact of the TikTok deal is still unfolding.