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 restructures ownership of the American business and removes the threat of a nationwide ban.
New Joint Venture Reshapes Control
The new structure gives outside investors half of TikTok’s United States operations. The investor group includes Oracle, Silver Lake, and Emirati investment firm MGX. Shou Zi Chew outlined the arrangement in an internal message. The transaction is set to close on 22 January. Company leaders said the deal stabilises the platform’s future.
Years of Political Pressure Ease
The agreement follows years of pressure from Washington 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 structure closely follows the plan revealed at that time.
TikTok said the deal keeps the app available to more than 170 million American users. Executives described the platform as a vital global community. They said the agreement protects creativity and digital commerce.
Ownership Stakes Defined
ByteDance will retain a 19.9% stake in the American 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 under the agreement.
Delays and Deadlines Drove Talks
In April 2024, Congress passed a law threatening 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 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 lingered after the leaders met in person in October.
Global Tensions Shaped the Outcome
Trade disputes and strategic rivalry complicated negotiations. Analysts said the app became part of a broader diplomatic contest. Alvin Graylin of the Massachusetts Institute of Technology said TikTok served as leverage between the two powers. 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. The outcome reduced pressure without visible concessions.
Criticism Continues on Capitol Hill
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 fails to protect American user privacy.
Wyden questioned whether retraining the algorithm improves security. He said the technology may remain exposed. Wyden opposed the 2024 law but supported deadline extensions. He wanted Congress to address risks without banning the app.
Users and Small Businesses Stay Alert
The deal requires TikTok to retrain its recommendation algorithm using American user data. The company said the change will reduce outside influence. Some users remain cautious. 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 better 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 results.
Over the past year, she helped organise protests online and in Washington. The campaigns aimed to stop a ban. Relief now mixes with uncertainty across the platform.
