Has the U.S. Taken Over TikTok? Not Yet, But It’s Close

TikTok’s place in the United States has never been secure. For years, lawmakers have warned that the wildly popular video app—owned by Beijing-based ByteDance—could be pressured by the Chinese government to hand over U.S. user data or influence content on American screens. Now, after months of negotiations, a deal is taking shape that would bring TikTok firmly under U.S. control. But it falls short of a full takeover.

The Law That Forced the Issue

The turning point came in April 2024, when Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA). The law gave apps controlled by foreign adversaries a stark choice: sell to U.S. owners or face a ban. With more than 170 million U.S. users, TikTok was the clear target.

“Americans deserve to know their personal data is safe and not accessible to adversarial governments,” Sen. Maria Cantwell (D-WA), one of the bill’s architects, said at the time. “This legislation ensures we draw that line.”

The Framework Agreement

In mid-September 2025, the Biden administration announced a framework agreement with TikTok and ByteDance. The deal would:

• Transfer roughly 80% ownership of TikTok’s U.S. arm to a consortium of American investors, led by Oracle and Silver Lake, alongside venture firms like Andreessen Horowitz.
• Leave ByteDance with a minority stake under 20%.
• Place TikTok’s U.S. user data in Oracle-managed servers inside the United States.
• Create a board dominated by U.S. citizens to oversee TikTok’s American operations.

“This agreement represents a significant step forward in ensuring that TikTok’s U.S. business is operated transparently, securely, and with accountability to the American people,” Treasury Secretary Janet Yellen said in a briefing.

The Algorithm Problem

But the deal doesn’t solve everything. The crown jewel of TikTok—its recommendation algorithm—remains in China. Beijing has made clear it will not allow ByteDance to transfer or sell the technology. That means TikTok’s U.S. version will continue to license the algorithm from its Chinese parent.

“Ownership and governance may be shifting to the U.S., but the product’s brain will still sit in Beijing,” said Samm Sacks, a senior fellow at Yale Law School’s Paul Tsai China Center. “That creates a gray zone in terms of security and influence.”

China’s Ministry of Commerce confirmed in a statement that TikTok’s U.S. operations “will operate on licensed technology from ByteDance,” signaling that while Washington may control the company’s structure, Beijing retains leverage over its most valuable asset.

What Happens Next

The framework is not yet final. Enforcement deadlines have been extended several times as negotiations continue, and questions remain about how much influence ByteDance will retain through its minority stake and licensing agreements.

Investors, however, appear eager to finalize the restructuring. “TikTok is one of the most important consumer platforms in the U.S.,” said Larry Ellison, Oracle’s co-founder. “Our role is to ensure Americans can continue to use it safely and securely.”

The Bottom Line

So, has the U.S. “taken over” TikTok? Not exactly. What’s emerging is a hybrid structure: a TikTok that is majority U.S.-owned, overseen by American investors, with U.S. data held in U.S. servers—yet still dependent on a Chinese-made algorithm.

For lawmakers, it may be enough to declare victory. For Beijing, it preserves a foothold in one of the world’s most influential digital platforms. And for users, the app will look the same—though behind the scenes, it’s become a case study in how geopolitics can reshape the digital world.