TikTok has finalized an agreement to launch a separate version of the app in the U.S., effectively ending nearly a year-long legal battle over a potential ban of the platform.

Under a project called TikTok USDS Joint Venture, three American companies — Oracle, owned by Larry Ellison, as well as Silver Lake and MGX — will hold a controlling stake, each owning 15%. TikTok’s Chinese parent company, ByteDance, will retain a 19.9% stake.

Other investors include Dell founder and CEO Michael Dell, Managing Director of Susquehanna International Group Mark Dooley, Senior Advisor to TPG Global Timothy Dattels, and several others.

The announcement comes five years after U.S. President Donald Trump first threatened to ban the platform.

Will TikTok’s Algorithm Remain as Effective?

Although the deal resolves TikTok’s long-standing presence in the U.S. market, it also raises concerns among marketing specialists in the gaming industry. According to Mike Craddock, CEO and co-founder of the social media agency NewGen, many brands rely on the platform for audience acquisition, community building, and player growth.

Previously, online gaming companies actively used TikTok to boost engagement with crash games and promote new releases through streaming content.

Currently, casinos and sports betting companies in the U.S. are allowed to advertise on TikTok if they work with an official company representative and follow platform guidelines.

Questions remain about whether “the very thing that makes TikTok so powerful — its algorithm — will function the same way under the new deal,” Craddock noted.

In the U.S., more than 200 million people and 7.5 million businesses use the app to discover, create, and engage with content. Under the deal, the Joint Venture will train, test, and update the recommendation algorithm based on U.S. user data.

The algorithm will be hosted and secured within Oracle’s U.S. cloud infrastructure.

Additionally, the Joint Venture will have authority over trust and safety policies, including content moderation. The organization will be built on the foundation of TikTok US Data Security (USDS) and will operate independently.

Craddock believes marketers need not worry excessively as the spin-off app is launched, noting that “platform shifts are nothing new”.

“Algorithm updates and evolving feed dynamics are part of the landscape, and the same rulebook applies: stay adaptable, test continuously and build strategies that can flex as platforms change.

“What drives performance today may look very different in a matter of months, so agility will be key. For gaming brands, success on TikTok will continue to come from creative that resonates with communities, not from relying on any single version of the algorithm.”

The new CEO will be Adam Presser, who previously served as TikTok’s General Manager and Global Head of Operations.

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