ByteDance has signed binding agreements with American and international investors to keep TikTok operating in the United States. Chief executive Shou Zi Chew confirmed the agreement in a memo sent to employees on Thursday. The deal reshapes ownership of the American business and removes the immediate risk of a ban.
New Investor Alliance Takes Control
The agreement creates a joint venture that hands 50% ownership to outside investors. Oracle, Silver Lake, and Emirati investment firm MGX lead the group. Shou Zi Chew described the structure in an internal message. The transaction is scheduled to close on 22 January. Executives said the deal provides stability for the platform.
Long Standoff With Washington Nears an End
The deal follows years of political pressure over national security concerns. Lawmakers argued Chinese ownership created unacceptable risks. In September, President Donald Trump delayed enforcement of legislation targeting the app. That decision reopened negotiations. The final agreement closely matches the framework announced at that time.
TikTok said the deal allows more than 170 million Americans to keep using the app. Company leaders described the platform as a global digital community. They said the agreement protects creativity and economic opportunity.
Ownership Shares Clearly Defined
ByteDance will retain 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.
Legal Deadlines Accelerated Talks
In April 2024, Congress passed a law threatening a ban unless a sale occurred. Lawmakers cited security concerns during President Joe Biden’s administration. The law was set to take effect on 20 January 2025. President Trump postponed enforcement several times after returning to office.
Trump said his administration worked to craft an acceptable ownership transfer. In September, he said he spoke by phone with Chinese President Xi Jinping. Trump said Beijing approved the structure. Uncertainty remained after the leaders met face to face in October.
Global Politics Shaped the Deal
Trade disputes and strategic rivalry complicated negotiations throughout the process. Analysts said the app became part of a broader diplomatic contest. Alvin Graylin of the Massachusetts Institute of Technology said TikTok acted as leverage between the two nations. He said easing tensions enabled approval of the structure.
Graylin described Beijing’s decision as calibrated de-escalation. He said algorithm licensing allowed both governments to claim success at home. The outcome reduced pressure without visible concessions.
Political Opposition Continues
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 does not protect American user privacy.
Wyden questioned whether retraining the algorithm 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.
Creators and Businesses Watch Closely
The deal requires TikTok to retrain its recommendation algorithm using American user data. The company said the change will limit outside influence. Some users expressed caution about the new ownership. Small business owner Tiffany Cianci said she hopes investors protect entrepreneurs.
Cianci has more than 300,000 followers and nearly four million likes on the platform. She said TikTok offers more favourable 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 the final impact.
Over the past year, she helped organise protests online and in Washington. The campaigns aimed to prevent a ban. The agreement brings relief but leaves lingering uncertainty.
