TikTok’s Chinese parent company ByteDance has signed binding agreements with US and global investors to sell a majority stake in its American business
Washington DC: TikTok has finalised a joint venture agreement that will allow the video-sharing platform to continue operating in the United States, according to an internal memo sent to employees by chief executive Shou Zi Chew on Thursday.
Under the deal, which is expected to close on 22 January, a consortium of investors including Oracle, Silver Lake and Abu Dhabi-based investment firm MGX will collectively own 50 per cent of the new US entity, with each holding a 15 per cent stake. Affiliates of existing ByteDance investors will own a further 30.1 per cent, while ByteDance will retain a 19.9 per cent stake, the maximum ownership permitted for a Chinese company under US law.
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Chew said the new US joint venture will be responsible for data protection, algorithm security, content moderation and software assurance for American users. The entity will also have exclusive authority to provide assurances that TikTok’s content, software and user data in the US are secure.
The White House has previously stated that Oracle will license TikTok’s recommendation algorithm as part of the arrangement. Oracle, co-founded by executive chairman Larry Ellison, declined to comment on the deal when contacted.
The agreement follows years of pressure from Washington over national security concerns related to TikTok’s Chinese ownership. In April 2024, during former president Joe Biden’s administration, the US Congress passed legislation requiring ByteDance to sell TikTok’s US operations or face a nationwide ban. The law was initially set to take effect on 20 January 2025 but was repeatedly delayed by President Donald Trump through executive orders while negotiations continued.
The deal broadly aligns with a framework announced by the White House in September, after Trump delayed enforcement of the ban. Trump later said he had spoken with Chinese President Xi Jinping, who he claimed had given approval for the transaction to proceed.
In his memo, Chew said the agreement would allow “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” while noting that further work remains ahead of the January closing date.
The White House referred queries to TikTok, while Oracle declined to comment.
Published: 19 Dec 2025, 07:48 am IST
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