US and Canada Implement Controversial TikTok Ownership and Security Deals

In late 2023, TikTok agreed to spin off its U.S. operations to Oracle, Silver Lake, and MGX, transferring about 45% control amid national security concerns and a $2.5 billion payment to the U.S. government. Canada followed with a compromise allowing TikTok to operate under enhanced oversight but without fully resolving ownership and data security issues. These deals highlight escalating government efforts to mitigate perceived risks from TikTok’s Chinese parent company while raising ongoing concerns about transparency and long-term regulatory effectiveness.