TikTok has taken a crucial step toward securing its future in the United States after its Chinese owner ByteDance signed binding agreements with a group of U.S. and international investors to operate the app’s American operations.
In a memo to employees on Thursday, TikTok CEO Shou Zi Chew confirmed that the deal will result in a new joint venture taking control of the platform’s U.S. operations, ending years of political uncertainty and the threat of an outright ban on national security grounds. The transaction is expected to close on January 22nd.
Under the deal, a consortium of investors including Oracle, Silver Lake and Abu Dhabi-based MGX will jointly own half of the new company. ByteDance will retain a 19.9 percent stake, while the remaining shares will be held by affiliates of existing ByteDance investors. Oracle, Silver Lake and MGX will each take 15 percent of the shares.
The deal is in line with a framework unveiled in September when US President Donald Trump delayed enforcing laws that would have banned TikTok if its US operations had not been sold. This law, passed by Congress under the Biden administration in April 2024, was scheduled to take effect on January 20, 2025, but was repeatedly postponed during negotiations.
TikTok said the agreement would allow “over 170 million Americans to continue to discover a world of endless possibilities” on the platform. The White House has previously indicated that as part of the agreement, Oracle will receive a license to TikTok’s recommendation algorithm, with safeguards intended to address concerns about foreign influence and data security.
The path to the deal was marked by geopolitical tensions. Trump said in September that he had spoken directly to Chinese President Xi Jinping and claimed Beijing had given its approval. But the app’s fate remained uncertain after U.S.-China relations were strained by trade disputes and a broader strategic rivalry.
Alvin Graylin, a lecturer at the Massachusetts Institute of Technology, said the agreement reflected a change in tone between the two powers. He described TikTok as “a negotiating tool in the broader U.S.-China relationship,” adding that China’s acquiescence now looks more like a “calibrated de-escalation” than a surrender.
Not everyone is convinced the deal addresses underlying concerns. Senator Ron Wyden, an Oregon Democrat, warned that the deal may do little to protect Americans’ privacy or prevent algorithmic influence. TikTok has announced that it will retrain its recommendation system on US user data to reduce the risk of external manipulation.
Among creators and companies that rely on the platform, the reaction has been cautious but hopeful. Tiffany Cianci, a small business owner with hundreds of thousands of followers on TikTok, said she hopes the new ownership structure will maintain the platform’s appeal for entrepreneurs. TikTok estimates that more than seven million small businesses in the US use the app to market their products and services.
With the deal now signed, TikTok appears to have gained stability in its largest foreign market. Whether the new structure fully satisfies legislators, regulators and users alike will only become clear once the joint venture begins operations under its new owner.
