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 deal in a memo to employees on Thursday. The agreement reshapes the U.S. business and removes the immediate threat of a ban.
Investors Gain Major Control
The deal forms a joint venture giving outside investors 50% of TikTok’s U.S. operations. Oracle, Silver Lake, and Emirati firm MGX lead the group. Shou Zi Chew outlined the structure in an internal memo. The transaction is scheduled to close on 22 January. Executives said the arrangement ensures long-term stability.
Political Pressure Finally Eases
The agreement follows years of U.S. political pressure 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 deal closely follows the framework revealed during earlier talks.
TikTok said the agreement allows more than 170 million Americans to continue using the platform. Company leaders described the app as a vital global digital community. They said the deal protects creativity, commerce, and user engagement.
Clear Ownership Breakdown
ByteDance will retain a 19.9% stake in the U.S. business. Oracle, Silver Lake, and MGX will each hold 15%. Affiliates of existing ByteDance investors will control the remaining 30.1%. The White House said Oracle will license TikTok’s recommendation algorithm as part of the deal.
Deadlines and Negotiations Drove Progress
In April 2024, Congress passed a law threatening a ban unless TikTok was sold. Lawmakers cited national security risks 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 spoke by phone with Chinese President Xi Jinping. Trump said Beijing approved the structure. Uncertainty remained after the leaders met in person in October.
Global Tensions Shaped the Outcome
Trade disputes and strategic rivalry complicated negotiations. Analysts said TikTok became part of a broader diplomatic struggle. Alvin Graylin of MIT said the app served as leverage between the U.S. and China. He said easing tensions enabled approval of the deal.
Graylin described Beijing’s decision as a calibrated de-escalation. He said algorithm licensing allowed both governments to claim domestic success. The agreement reduced pressure without visible concessions.
Political Criticism Persists
When contacted, the White House referred questions to TikTok. Oracle and Silver Lake declined to comment publicly. MGX did not respond. Democratic Senator Ron Wyden of Oregon criticised the deal. 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 Stay Cautious
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 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. She said TikTok offers more favourable profit-sharing than competitors like Meta. TikTok said more than seven million American small businesses use the platform. Cianci said she will reserve judgment on the final outcome.
Over the past year, she helped organise protests online and in Washington. The campaigns aimed to prevent a ban. The agreement brings relief while uncertainty remains over TikTok’s future.
