TikTok owner ByteDance has signed binding agreements with American and international investors to operate the app in the United States. Chief executive Shou Zi Chew confirmed the deal in a memo to employees on Thursday. The agreement restructures ownership of TikTok’s American business and removes the immediate threat of a nationwide ban.
Investors Take Control of Half the Business
A new joint venture will place 50% ownership with a group of outside investors. The group includes Oracle, Silver Lake, and Emirati investment firm MGX. Shou Zi Chew detailed the structure in an internal message. The transaction is set to close on 22 January. Executives said the move stabilises TikTok’s future in the American market.
Long Campaign Against a Ban Nears an End
The deal follows years of pressure from Washington over national security concerns. Lawmakers argued Chinese ownership posed unacceptable risks. In September, President Donald Trump delayed enforcement of legislation targeting the app. That pause allowed negotiations to continue. The final agreement closely matches the outline revealed during those earlier talks.
TikTok said the arrangement ensures continued access for more than 170 million American users. The company framed the platform as a key part of a global digital community. Leaders said the agreement protects creativity and commerce across the app.
Ownership Stakes Clearly Defined
ByteDance will keep a 19.9% stake in the United States business. Oracle, Silver Lake, and MGX will each hold 15%. Affiliates of existing ByteDance investors will control the remaining 30.1%. The White House previously said Oracle will license TikTok’s recommendation algorithm under the deal.
Political Delays Shaped the Outcome
Negotiations advanced after repeated delays. In April 2024, during President Joe Biden’s term, Congress passed a law threatening a ban unless a sale occurred. The law targeted national security risks. It was due to take effect on 20 January 2025. President Trump postponed enforcement several times after returning to office.
Trump said his administration sought a structure acceptable to both governments. In September, he said he spoke by phone with Chinese President Xi Jinping. Trump said Beijing approved the plan. Questions remained after the two leaders met in person in October.
Geopolitics Influenced the Final Deal
Trade disputes and strategic rivalry complicated talks. Analysts said the app became part of a broader diplomatic struggle. Alvin Graylin of the Massachusetts Institute of Technology said TikTok turned into leverage between the two countries. He said easing tensions allowed approval of the structure.
Graylin argued Beijing’s decision reflected calculated de-escalation. He said algorithm licensing helped both governments claim success at home. The deal reduced pressure without appearing weak.
Lawmakers and Officials React
When contacted, the White House referred questions to TikTok. Oracle and Silver Lake declined to comment publicly. MGX did not issue a statement. Democratic Senator Ron Wyden of Oregon criticised the agreement. He said it fails to protect American user privacy.
Wyden questioned whether algorithm retraining improves security. He said the technology may remain vulnerable. Wyden opposed the 2024 law but supported extending deadlines. He wanted Congress to address risks without banning the app outright.
Users and Businesses Remain Cautious
The agreement requires TikTok to retrain its recommendation algorithm using American user data. The company said the change will limit outside influence. Some users remain sceptical. Small business owner Tiffany Cianci said she hopes investors protect entrepreneurs on the platform.
Cianci has more than 300,000 followers and nearly four million likes. She said TikTok offers better profit-sharing than competitors like Meta. TikTok said more than seven million American small businesses use the app. Cianci said she will reserve judgment on whether the deal truly secures their future.
Over the past year, she helped organise protests online and in Washington. The campaigns aimed to prevent a ban. Relief now mixes with uncertainty for creators and businesses alike.
