After years of legal fights, political pressure, and repeated threats of a nationwide ban, TikTok has secured a path forward in the U.S. According to Bloomberg, TikTok and its Chinese parent ByteDance have finalized a long-awaited deal that shifts key parts of TikTok’s U.S. operations to a new American-led structure.
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The move removes the biggest overhang facing the popular video app and allows it to continue operating in the U.S. market.
TikTok Sets Up a New U.S.-Led Entity
As part of the deal, TikTok has set up a new U.S. entity backed by three managing investors: Oracle Corporation (ORCL), private equity firm Silver Lake, and Abu Dhabi-based investment company MGX. Together, the new investors will own 50% of the U.S. business, while existing ByteDance investors and ByteDance itself will hold the rest, in line with U.S. law.
TikTok CEO Shou Chew will remain in charge of the company globally and will take a seat on the new board. Adam Presser, a long-time TikTok executive, has been named CEO of the U.S. venture.
Agreement Clears Major Regulatory Hurdle
The deal brings closure to a five-year standoff driven by U.S. national security concerns. Lawmakers have argued that TikTok’s Chinese ownership could pose risks to user data and content control. In 2024, Congress passed legislation that would have forced a ban unless TikTok’s U.S. business was separated from ByteDance.
President Donald Trump praised the deal in a Truth Social post, thanking China’s President Xi “for working with us and, ultimately, approving the Deal.” He also said he hopes “that long into the future I will be remembered by those who use and love TikTok.”
The deadline for a potential ban had been extended several times before the final agreement was reached.
Why This Deal Matters for Users and Creators
While the final valuation of TikTok’s U.S. business remains unclear, estimates have ranged widely, reflecting its strong position in advertising, e-commerce, and live streaming. More importantly, the deal is a major win for creators, brands, and small businesses — and for the roughly 200 million U.S. users who rely on the app for entertainment, news, and income.
For now, TikTok’s long-running U.S. drama appears to be over, and the app can finally focus on growth instead of survival.
Is ORCL Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 24 Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average ORCL price target of $306.37 per share implies 71.94% upside potential.
