TikTok Agreements to Evade US Ban: A New Chapter

On December 18–19, 2025, TikTok and its parent company ByteDance said they signed binding deals to restructure TikTok’s US operations through a new US-based joint venture, a move aimed at satisfying the country’s divest-or-ban legal and political pressure and preventing an outright shutdown of the app for American users. These TikTok agreements arrive after years of US government scrutiny focused on national security concerns tied to Chinese ownership, data access, and the platform’s recommendation algorithm. AP News+2Reuters+2

The bottom line is that the TikTok agreements are presented as a control-and-governance solution: shift operational control of sensitive US-facing functions into a US-majority structure, with Oracle positioned as a “trusted security partner” overseeing data and certain security processes, while ByteDance retains a minority ownership stake and continues to play a role in business operations. AP News+2Reuters+2

Background on the US Ban Threat

Why TikTok became a national security target

For years, US officials and lawmakers have argued that TikTok’s ownership structure creates a risk that sensitive user data or platform influence could be accessed or shaped by China’s government, either through legal leverage over Chinese firms or through technical access pathways. This concern helped drive a bipartisan “divest-or-ban” approach that required ByteDance to divest control of TikTok’s US operations or face restrictions on operating in the United States. The TikTok agreements are the latest attempt to comply with that approach without ending access for more than 170 million US users. AP News+1

The enforcement delay and the shifting deadline

In 2025, the White House issued actions that extended enforcement delays related to the divest-or-ban law, effectively creating more time for negotiations and for a structure that could be argued to meet US requirements. One published White House action extended the enforcement delay until December 16, 2025, providing the policy runway leading into the current TikTok agreements announced in mid-December. The White House+1

Those delays matter because they shaped the timetable: a looming enforcement date tends to force deals out of the “framework” stage and into binding commitments. Reporting in December 2025 indicates the TikTok agreements are designed to bring that process to a close with a defined ownership split and a closing date in January 2026. Reuters+1

What the New TikTok Agreements Say

A new US joint venture structure

Major reporting indicates ByteDance signed binding agreements to hand control of TikTok’s US operations to a newly created joint venture entity. In Reuters coverage, the entity is described as TikTok USDS Joint Venture LLC, with US and allied investors controlling the majority stake and ByteDance retaining a minority position. These TikTok agreements are designed to create a governance structure that US officials can argue is controlled by US persons, while still allowing TikTok to function commercially at scale. Reuters+2AP News+2

Different outlets describe the ownership split in similar terms: a consortium including Oracle, Silver Lake, and Abu Dhabi-based MGX collectively takes a large ownership position, existing ByteDance investors hold a significant share, and ByteDance retains 19.9%, a figure widely described as the maximum allowed under relevant US foreign-ownership constraints applied to this structure. AP News+2Financial Times+2

What functions move under US oversight

Across coverage, the TikTok agreements allocate responsibility for certain sensitive functions—especially data protection, algorithm security, content moderation, and software assurance—to the US joint venture. Oracle is repeatedly described as the trusted security partner with a central role in safeguarding US user data and supporting compliance. AP News+2Reuters+2

That division is important because it reflects the core US demand: reduce or remove the ability of a foreign parent to influence how US user data is stored and accessed and how the algorithm is managed, particularly for the recommendation engine that shapes what Americans see. The TikTok agreements attempt to operationalize that by putting those controls into a US-governed entity, rather than leaving them primarily with ByteDance. Financial Times+1

The closing date and remaining approvals

Reporting describes the TikTok agreements as signed and binding, with a target close date around January 22, 2026. However, the same reporting notes that work remains, including the practical and regulatory steps required to complete the restructuring. Reuters+2AP News+2

One unresolved area frequently highlighted is how the arrangement handles TikTok’s core algorithm and licensing, including what approvals may be needed from Chinese authorities and what level of operational separation is achieved in practice. Those questions are a major reason the TikTok agreements are likely to be tested politically even after they are implemented. Financial Times+1

How These TikTok Agreements Relate to “Project Texas”

The data-security storyline

Long before this week’s deal, TikTok promoted a US-focused data security effort often referred to publicly as “Project Texas,” designed to store US user data domestically and reduce perceived foreign access risk. TikTok’s US Data Security (USDS) concept shows up again in current reporting as the backbone brand and operational unit around which the new joint venture is structured. The TikTok agreements can be understood as turning an earlier security-and-compliance posture into a more formal ownership and governance structure. The Verge+1

Why a new structure was still pursued

Even with Project Texas-style commitments, US political pressure did not fade, because the core issue in Washington was not just where data sits, but who can ultimately control systems, personnel, and the algorithm. The TikTok agreements represent an attempt to answer the control question more directly than prior security proposals by changing ownership and board governance, not only security architecture. AP News+1

Implications for TikTok, US Users, and Regulators

What TikTok gains if the agreements hold

If the TikTok agreements survive regulatory and political scrutiny, TikTok maintains uninterrupted access to one of its most valuable markets. The US user base—reported as more than 170 million Americans—drives advertising revenue, creator ecosystems, and a major share of TikTok’s global influence. Losing the US market would be a major blow; avoiding that outcome is the primary business consequence of the TikTok agreements. AP News+1

What US regulators gain—and what they will still test

For US officials, the TikTok agreements offer a framework to claim progress on the stated national security objective: majority US ownership and governance over data protection and algorithm security, with Oracle as a trusted partner. But the real test will be enforcement and verification—how audits, access controls, code review, and board governance work in day-to-day reality, not just on paper. The TikTok agreements will likely be judged by whether they can demonstrate durable operational independence. Reuters+2AP News+2

A precedent for other foreign tech firms

The TikTok agreements may also influence how other foreign-owned platforms respond to US security scrutiny. The approach signals that the US may accept a structured compliance-and-control model if it produces a governance outcome that can credibly be described as US-controlled and security-auditable. Whether that becomes a broader template depends on how this deal performs under political pressure and technical evaluation. Reuters+1

Public and Political Reactions

Public reaction has been divided between users and creators who want platform continuity and critics who argue the TikTok agreements still may not eliminate influence risks tied to a foreign parent’s continued economic interest and ongoing operational role. Some coverage also notes political objections aimed at the investor mix and broader concerns about concentrated power, suggesting the TikTok agreements could remain controversial even if the app stays online. The Guardian+1

That controversy is not just rhetorical. The TikTok agreements are an example of a deal designed to satisfy a national security law without fully removing the originating company’s economic stake, and that tension can become a flashpoint when lawmakers evaluate whether the arrangement truly meets the intent of divestiture requirements. Financial Times+1

Bottom Line

The TikTok agreements signed in December 2025 are a major inflection point in the long-running US effort to force structural change in how TikTok operates domestically. The deal’s credibility will depend on governance, technical controls, and enforceable separation—especially around algorithm oversight and data protection—rather than on branding or headline ownership percentages alone. For TikTok users and creators, the immediate impact is the reduced likelihood of a near-term ban; for policymakers, the central question is whether these TikTok agreements provide real, auditable security guarantees or mainly repackage risk into a new corporate wrapper. AP News+2Reuters+2

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TikTok Agreements to Evade US Ban: What ByteDance Signed and What Comes Next