By Blessing Nweke
TikTok’s Chinese parent company, ByteDance, has signed binding agreements with US and international investors to transfer majority ownership of the app’s American operations, TikTok chief executive Shou Zi Chew told employees on Thursday. The deal, set to close on 22 January, could finally resolve years of political and legal uncertainty surrounding the platform’s future in the United States.
Under the agreement, a new joint venture will be created in which a group of investors — including Oracle, private equity firm Silver Lake and Abu Dhabi-based investment company MGX — will collectively own 50% of TikTok’s US business. ByteDance will retain a 19.9% stake, while another 30.1% will be held by affiliates of existing ByteDance investors.
The structure closely follows a framework unveiled in September, when US President Donald Trump delayed enforcement of a law that would have banned TikTok unless its US operations were sold. That law, passed by Congress in April 2024 during President Joe Biden’s administration, cited national security concerns over potential Chinese government influence.
In a memo to staff, TikTok said the agreement would allow “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.” The White House has previously said Oracle will license TikTok’s recommendation algorithm, a key point aimed at addressing concerns about data security and manipulation.
President Trump said in September that Chinese President Xi Jinping had given the deal his approval, although the app’s fate remained uncertain amid ongoing US-China trade and diplomatic tensions. Analysts say TikTok has become a bargaining chip in the broader relationship between the two powers.
Critics remain unconvinced. Senator Ron Wyden of Oregon argued the deal would not adequately protect American users’ privacy, questioning whether control of TikTok’s powerful algorithm would truly be secured.
Some creators and small business owners have also urged caution, hoping new investors will preserve TikTok’s unique ecosystem, which more than seven million US small businesses rely on for marketing and sales.
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