ByteDance has signed binding agreements with American and international investors to continue TikTok operations in the United States. Chief executive Shou Zi Chew confirmed the deal in a memo to employees on Thursday. The agreement reshapes ownership of the American business and blocks an impending ban.
Joint Venture Hands Control to Investors
The new structure gives outside investors 50% ownership of TikTok’s United States operations. Oracle, Silver Lake, and Emirati investment firm MGX lead the group. Shou Zi Chew explained the arrangement in an internal message. The deal is scheduled to close on 22 January. Company leaders said the move guarantees operational continuity.
Long Dispute With Washington Nears Resolution
The agreement ends years of political pressure over national security concerns. American lawmakers argued Chinese ownership posed unacceptable risks. In September, President Donald Trump delayed enforcement of legislation that threatened a ban. That delay reopened negotiations. The final deal mirrors the framework revealed at that time.
TikTok said the agreement ensures access for more than 170 million American users. Executives described the platform as a core part of a global digital community. They said the deal preserves creative and economic activity across the app.
Ownership Stakes Clearly Allocated
ByteDance will retain a 19.9% stake in the American 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 as part of the arrangement.
Legislative Deadlines Drove Negotiations
Congress passed a law in April 2024 that threatened a ban unless a sale occurred. Lawmakers cited national security concerns during President Joe Biden’s administration. The law was due to take effect on 20 January 2025. President Trump delayed enforcement several times after returning to office.
Trump said his administration worked to engineer an acceptable ownership transfer. In September, he said he spoke by phone with Chinese President Xi Jinping. Trump said Beijing approved the structure. Questions remained after the two leaders met face to face in October.
Global Politics Shaped the Outcome
Trade disputes and strategic rivalry complicated negotiations. Analysts said the app became part of broader diplomatic bargaining. Alvin Graylin of the Massachusetts Institute of Technology said TikTok served as leverage between the two powers. He said easing tensions allowed approval of the deal.
Graylin described Beijing’s decision as calibrated de-escalation. He said algorithm licensing allowed both governments to claim success. The structure reduced pressure without dramatic concessions.
Criticism From Capitol Hill Persists
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 shutting down the app.
Users and Businesses Remain Watchful
The deal requires TikTok to retrain its recommendation algorithm using American user data. The company said the process will reduce external influence. Some users expressed caution. 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 outcome.
Over the past year, she helped organise protests online and in Washington. The campaigns aimed to stop a ban. The agreement brings relief but leaves lingering uncertainty.
