New Ownership Structure Paves the Way for TikTok's US Operations

Fri Dec 19 2025 20:26:41 GMT+0200 (Eastern European Standard Time)

ByteDance signs crucial deal with American investors, allowing TikTok to circumvent a potential US ban while addressing national security concerns.

TikTok's owner, ByteDance, has reached a landmark agreement with US investors, ensuring that the popular app continues to operate in America without interruption. The deal, involving major firms like Oracle and Silver Lake, culminates months of negotiations amid rising tensions between the US and China over privacy and national security issues. Set to finalize on January 22, the agreement allows ByteDance to retain a minority stake while US investors gain control, a move seen as critical for TikTok's future in the American market.

TikTok's Chinese owner ByteDance has signed binding agreements with U.S. and global investors to operate its business in America, as revealed by TikTok's CEO, Shou Zi Chew, to employees on Thursday.

The joint venture will see a coalition of investors, including Oracle, Silver Lake, and the Emirati investment firm MGX, acquiring a 50% stake in the business. The closing of this agreement is set for January 22 and aims to resolve years of attempts by the U.S. government to force a sale of TikTok's U.S. operations due to perceived national security risks.

This agreement aligns with a deal announced in September, wherein the then-President Donald Trump postponed enforcement of a ban that would restrict TikTok unless it was sold to U.S. interests.

TikTok emphasized that the deal enables over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community. According to the terms, ByteDance will maintain a 19.9% ownership, whereas Oracle, Silver Lake, and MGX will each hold 15%. The remaining shares will be held by affiliates of existing ByteDance investors.

Notably, Oracle is expected to license TikTok's recommendation algorithm under this deal, a move that could allay some national security concerns previously raised by the U.S. government.

The backdrop of this agreement is a complex political landscape marked by the passage of legislation under President Biden's administration aimed at banning TikTok unless it was sold, with the law's enforcement timeline shifting numerous times.

Alvin Graylin from MIT commented, TikTok has become a bargaining chip in the wider US-China relationship, noting that the recent agreement reflects a strategic de-escalation that allows both countries to mark a win domestically.

However, the deal has not been universally praised; critiques highlight ongoing privacy concerns for American users. Senator Ron Wyden expressed skepticism, arguing that the arrangement failed to adequately safeguard user data and privacy.

Some TikTok users, particularly small business owners who rely on the platform, remain cautiously hopeful about maintaining their access to the app's features and benefits.

Overall, this agreement marks a significant moment in the ongoing saga of TikTok's operations in the United States and exemplifies the complexities of international business amidst geopolitical tensions.