The U.S. government has announced a deal allowing Oracle to operate TikTok for American users, with the platform's algorithm being transferred to U.S. control to address security concerns.

The arrangement involves a U.S.-based joint venture with a majority American investor and board members, and aims to separate TikTok from its Chinese parent company, ByteDance, in compliance with U.S. legislation.

China has reportedly approved the deal, which is expected to be finalized within 120 days, though final paperwork remains pending from both sides.

The U.S. government will monitor the algorithm for irregular activity, and it will not be shared with ByteDance, ensuring U.S. users' data is protected from Chinese access.

While the core user experience on TikTok is expected to stay the same, subtle technical changes due to algorithm retraining could impact content recommendations, with some uncertainty about user reception.

The deal's value is estimated in the billions, and it aims to prevent TikTok from being banned in the U.S., with enforcement deadlines having been extended multiple times.

The White House has emphasized that international content visibility will be maintained, allowing U.S. users to view overseas content and vice versa.

Content creators are preparing for possible disruptions by building audiences on other platforms, which could help preserve TikTok’s influence regardless of ownership changes.

The deal marks a rare positive development in U.S.-China relations amidst ongoing trade tensions, reflecting a potential easing of geopolitical frictions.

Experts warn of potential risks, including content manipulation and the platform becoming politically aligned, similar to other social media after ownership shifts.

The deal may require U.S. users to transition to a new platform if TikTok is forced to change or be banned, though details about this new platform remain unclear.

Overall, the agreement represents a significant step in resolving security concerns while maintaining TikTok’s popularity in the U.S., with the process still subject to final approvals and negotiations.