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 restructures ownership of the American business and removes the immediate risk of a ban.
New Investor Structure Takes Hold
The agreement creates a joint venture that grants outside investors 50% ownership of TikTok’s United States operations. Oracle, Silver Lake, and Emirati investment firm MGX lead the investor group. Shou Zi Chew outlined the structure in an internal message. The transaction is expected to close on 22 January. Executives said the deal secures long-term stability.
Years of Political Pressure Begin to Fade
The deal follows years of political pressure tied to national security concerns. Lawmakers argued Chinese ownership posed unacceptable risks. In September, President Donald Trump delayed enforcement of legislation aimed at banning the app. That pause reopened negotiations. The final structure closely matches the plan revealed during those 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 and economic opportunity.
Ownership Shares Clearly Set Out
ByteDance will retain a 19.9% stake in the United States business. Oracle, Silver Lake, and MGX will each control 15%. Affiliates of existing ByteDance investors will hold the remaining 30.1%. The White House previously said Oracle will license TikTok’s recommendation algorithm.
Legislative Deadlines Drove Negotiations
In April 2024, Congress passed a law threatening a ban unless a sale occurred. Lawmakers raised security concerns during President Joe Biden’s administration. The law was due to take effect on 20 January 2025. President Trump postponed enforcement several times after returning to office.
Trump said his administration worked to design an acceptable ownership transfer. In September, he said he spoke by phone with Chinese President Xi Jinping. Trump said Beijing approved the structure. Uncertainty lingered after the leaders met face to face in October.
Global Tensions Shaped the Final Outcome
Trade disputes and strategic rivalry complicated talks throughout the process. Analysts said the app became part of a wider diplomatic contest. Alvin Graylin of the Massachusetts Institute of Technology said TikTok served as leverage between the two nations. He said easing tensions enabled approval of the deal.
Graylin described Beijing’s decision as calibrated de-escalation. He said algorithm licensing allowed both governments to claim success domestically. The outcome reduced pressure without visible concessions.
Political Criticism 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 Remain Watchful
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 stop a ban. The agreement brings relief while uncertainty still surrounds the future.
