TikTok has announced a joint venture agreement with a group of investors that will allow the platform to continue operating in the United States, easing the threat of a ban linked to its Chinese ownership.
The deal brings to a close a lengthy dispute over TikTok’s future in the world’s largest economy, where the company says it has more than 170 million users.
In an internal memo obtained by AFP, TikTok chief executive Shou Chew told employees that the company and its Chinese parent, ByteDance, had agreed to establish a new US-based entity. The venture includes significant investment from Oracle, Silver Lake and Abu Dhabi-based firm MGX.
Oracle executive chairman Larry Ellison, a long-time ally of US President Donald Trump, is among the prominent figures involved in the arrangement.
Chew said the US joint venture would oversee data protection for American users, algorithm security, content moderation and software assurance. He added that the new entity would have exclusive authority to guarantee that US user data, content and software remain secure.
Under the ownership structure, a consortium of new investors will control 50 percent of the venture, with Oracle, Silver Lake and MGX each holding 15 percent stakes. Affiliates of existing ByteDance investors will own just over 30 percent, while ByteDance itself will retain slightly under 20 percent—the maximum level allowed for a Chinese company under US law.
TikTok Global’s US entities will also manage global product interoperability and selected commercial activities, including e-commerce, advertising and marketing.
Chew noted that additional work remains ahead of the planned January 22 closing date. The agreement follows legislation signed under former US President Joe Biden requiring ByteDance to divest TikTok’s US operations or face a ban. US lawmakers have long cited national security concerns, warning that China could exploit the platform to access Americans’ data or influence public opinion.
Although Trump initially pushed for restrictions on TikTok during his first term, he later delayed enforcement of the law through a series of executive orders, most recently extending the deadline into January.
The deal largely confirms a White House announcement made in September, which said an arrangement meeting the requirements of the 2024 law had been reached.
“If I could make it 100 per cent MAGA, I would, but it’s not going to work out that way unfortunately,” Trump said at the time, while also naming Ellison as a key player in the process.
China’s foreign ministry did not comment directly on the reported agreement, with spokesman Guo Jiakun reiterating that Beijing’s position on TikTok remains unchanged.
ByteDance did not immediately respond to requests for comment, but analysts described the deal as a pragmatic compromise that preserves TikTok’s access to the lucrative US market.
“Keeping the US operation live is itself a victory” for ByteDance, said Li Chengdong, founder of Chinese technology consultancy Dolphin, adding that a resolution would allow the company to refocus on other priorities, including artificial intelligence, and potentially support plans for a future public listing.
Zhang Yi of research firm iiMedia noted that while the US market remains critical to TikTok, regulatory challenges could persist, warning that US authorities may still use their oversight powers to impose additional demands on the company.
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