ByteDance Reaches Deal With Investors to Avert US TikTok Ban
TikTok’s Chinese parent company, ByteDance, has signed binding agreements with a group of US and international investors to restructure ownership of the app’s American business, a move aimed at preventing a nationwide ban in the United States.
In a memo sent to staff on Thursday, TikTok chief executive Shou Zi Chew said the deal would see a new joint venture take control of the platform’s US operations. The transaction is expected to be completed on 22 January and would bring to an end years of pressure from Washington over national security concerns linked to Chinese ownership.
Under the arrangement, a consortium including Oracle, private equity firm Silver Lake and Abu Dhabi-based investment company MGX will collectively own 50% of the new entity. ByteDance will retain a 19.9% stake, while affiliates of existing ByteDance investors will hold the remaining 30.1%, according to the memo.
Oracle, Silver Lake and MGX will each take a 15% share of the business. The White House has previously said Oracle will license TikTok’s recommendation algorithm as part of the deal, a key element intended to address concerns about data security and foreign influence.
The agreement follows a framework unveiled in September, when US President Donald Trump delayed enforcement of a law that would have banned TikTok unless it was sold. That legislation, passed by Congress in April 2024 under former President Joe Biden, had been due to take effect on 20 January 2025 but was postponed several times as negotiations continued.
Mr Chew said the deal would allow “more than 170 million Americans to continue discovering a world of endless possibilities” on the platform, describing TikTok as an important part of a global online community.
President Trump previously said Chinese President Xi Jinping had approved the broad structure of the agreement, though uncertainty lingered after the two leaders met in person in October amid ongoing trade and diplomatic tensions between the US and China.
Analysts say the outcome reflects a broader easing of tensions. Alvin Graylin, a lecturer at the Massachusetts Institute of Technology, said TikTok had become “a bargaining chip in the wider US–China relationship,” adding that Beijing’s apparent approval now looks like “calibrated de-escalation” rather than a concession.
Despite the announcement, the deal has drawn criticism from some US lawmakers. Senator Ron Wyden of Oregon said the arrangement would not adequately protect the privacy of American users and questioned whether control of TikTok’s algorithm would truly be made safer.
Under the proposed structure, TikTok’s recommendation system is expected to be retrained using US user data to limit the risk of external interference. Senator Wyden said it was unclear whether that step would meaningfully reduce security risks.
Some users and creators have also expressed caution. Small business owner Tiffany Cianci, who has hundreds of thousands of followers on the platform, said she hoped new investors would preserve TikTok’s appeal for entrepreneurs.
TikTok says more than seven million small businesses in the US use the app to market products and services. Ms Cianci said she chose the platform because of its relatively favourable profit-sharing terms compared with rivals, adding that she would reserve judgement on whether the deal ultimately protects small businesses.
Over the past year, creators like Ms Cianci have taken part in protests and advocacy efforts in Washington and online, urging lawmakers to keep the platform accessible in the US.
