TikTok’s Chinese parent company, ByteDance, has signed binding agreements with US and international investors to keep the popular video-sharing app operating in the United States, according to a memo sent to employees by TikTok chief executive Shou Zi Chew.
Under the arrangement, a new joint venture will run TikTok’s US business, with 50% ownership held by a consortium of investors including Oracle, Silver Lake and Abu Dhabi-based investment firm MGX. The transaction is expected to close on 22 January.
The agreement is designed to end years of pressure from Washington, which has sought to force ByteDance to divest TikTok’s US operations over national security concerns.
It follows a framework announced in September, when US President Donald Trump postponed enforcement of a law that would have banned the app unless it was sold.
In the memo, TikTok said the deal would allow over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.
Ownership details show ByteDance retaining a 19.9% stake, while Oracle, Silver Lake and MGX will each hold 15%. Affiliates of existing ByteDance investors will control the remaining 30.1%.
The White House has previously said Oracle will license TikTok’s recommendation algorithm under the deal. Oracle was co-founded by Larry Ellison, a known supporter of President Trump.
The agreement follows a series of delays. In April 2024, under President Joe Biden’s administration, the US Congress passed legislation to ban TikTok unless it was sold, citing national security risks.
Although the law was due to take effect on 20 January 2025, President Trump delayed its enforcement several times while negotiations continued.
Trump said in September that Chinese President Xi Jinping had approved the deal, though uncertainty lingered after the two leaders met in October amid ongoing US-China tensions over trade and technology.
TikTok has become a bargaining chip in the broader US-China relationship, said Alvin Graylin, a lecturer at the Massachusetts Institute of Technology. He added that Beijing’s approval now appeared to be a calibrated de-escalation allowing both sides to claim a political win.
The White House referred requests for comment to TikTok. Oracle and Silver Lake declined to comment, while MGX has been contacted.
However, the deal has drawn criticism from some US lawmakers. Senator Ron Wyden of Oregon said the arrangement would not meaningfully protect the privacy of American users.
Under the terms, TikTok’s recommendation algorithm is to be retrained using US user data to prevent external manipulation, but Wyden questioned whether this would place the technology “in safer hands.
Some users have also expressed caution. Tiffany Cianci, a small business owner with more than 300,000 followers on TikTok, said she hoped the new investors would preserve the platform’s existing user experience and protect entrepreneurs who rely on it.
TikTok says more than seven million small businesses in the US use the platform to market their products and services. Cianci said she chose TikTok over rivals such as Meta because of its more favourable profit sharing terms, adding that she would reserve judgement on whether the deal truly safeguards the app’s future for small businesses.
Over the past year, Cianci has taken part in protests in Washington and on TikTok calling for the platform to be saved from a US ban.
