TikTok has signed a deal to spin-off its U.S. operations to a group controlled by mostly American investors, including software giant Oracle, a company run by Trump ally Larry Ellison.

TikTok’s hyper-engaging algorithm and the massive amount of data that app has collected on millions of Americans is set to be overseen by the new U.S. entity. TikTok’s algorithm, however, will still be owned and updated by Beijing-based ByteDance, with the blessing of American auditors, according to two sources familiar with the deal who were not authorized to speak publicly.

Under the terms of the sale, half of the new entity that will control the American version of TikTok will be owned by a consortium of investors including Oracle, private equity firm Silver Lake and United Arab Emirates state-backed investment firm MGX. Those three will control 45% of the new U.S. TikTok entity.

About a third of the newly-formed TikTok operation will be held by existing investors of ByteDance, the Chinese parent company of the video app. And around 20% will be kept by ByteDance.

A seven-member board of directors, most being American, will oversee the new entity, according to the memo, which was first reported by Axios.

The deal caps more than five years of mounting pressure from Washington, where bipartisan concerns about TikTok’s ties to China prompted Congress to pass a law in 2024 that would have banned the app unless it was sold.

The law was upheld by the Supreme Court in January. For months, TikTok was technically operating in violation of federal law, but Trump issued a flurry of executive actions to delay enforcement of the law that would have banned the popular video app.

TikTok has an estimated 2 billion users globally, and less than 10% of its worldwide users are based in the U.S.

A new U.S. entity overseeing the American version creates a curious situation for the viral video app: One version of the service will be under the direction of an American-backed company, with additional checks and balances on content flows and data security while a second version of the app, wholly operated by ByteDance, will be available to the rest of the world.