The landmark agreement ends years of uncertainty over the popular app's future in America, though critics question whether it truly severs Chinese ties.
TikTok has signed binding agreements to sell its US operations to a consortium of American investors, bringing the popular video-sharing platform one step closer to securing its future in the United States after years of political and legal turmoil.
CEO Shou Zi Chew announced the deal in an internal memo to employees on Thursday, stating: "We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community."
The Deal Structure
The transaction establishes a new entity called "TikTok USDS Joint Venture LLC," which will be controlled by a consortium of investors. Oracle, Silver Lake, and Abu Dhabi-based investment firm MGX will each hold a 15 percent share, collectively owning 45 percent of the venture. Another 30.1 percent will be held by affiliates of existing ByteDance investors, while China-based ByteDance will retain 19.9 percent.
The joint venture will be governed by a seven-member, majority-American board of directors and will be subject to terms designed to protect Americans' data and national security, according to Chew's memo.
The deal is expected to close on January 22, according to the internal memo.
A Long Road to Resolution
The agreement marks the end of years of uncertainty that began when Congress passed bipartisan legislation in 2024 requiring ByteDance to divest TikTok's US operations or face a ban. The law was upheld by the Supreme Court in January 2025.
For several hours on the January deadline, TikTok actually went dark. But on his first day back in office, President Donald Trump signed an executive order keeping the app running while his administration negotiated a sale. Trump subsequently issued multiple executive orders delaying enforcement as negotiations continued.
When announcing the framework in September, Trump stated: "It's owned by Americans, and very sophisticated Americans. This is going to be American-operated all the way."
Security Measures and Concerns
Under the agreement, the US joint venture will be responsible for data protection, algorithm security, content moderation, and software assurance. The platform's recommendation algorithm will be retrained using only American user data, and Oracle will serve as the trusted security partner responsible for auditing compliance.
ByteDance acknowledged the diplomatic efforts behind the deal, stating: "We thank President Xi Jinping and President Donald J. Trump for their efforts to preserve TikTok in the United States."
However, not everyone is satisfied. Jim Secreto, a former Treasury official who worked on TikTok policy during the Biden administration, criticized the arrangement, arguing that it fails to achieve the clean separation Congress intended.
"The law requires a clean break from ByteDance. This structure doesn't meet that standard," Secreto said. "It looks more like a franchise deal that leaves TikTok's core technology in China than a true divestment. By sidestepping the guardrails Congress set, the national security concerns around covert data access and manipulation of the algorithm remain unresolved."
Notably, while the US algorithm will be retrained on American data, the underlying technology will still be owned by Beijing-based ByteDance, with American auditors providing oversight.
What Comes Next
The deal still requires regulatory approvals from both the United States and China. While Trump has indicated Chinese President Xi Jinping supports the agreement, Beijing has not officially confirmed approval. When asked about the deal, Chinese foreign ministry spokesperson Guo Jiakun said Friday: "China's position on the TikTok issue is consistent and clear."
The arrangement creates a unique situation: one version of TikTok will operate under American oversight with enhanced data protections, while a separate version controlled entirely by ByteDance will serve the app's two billion users globally.
The deal also represents a significant win for Oracle's Larry Ellison, a prominent Trump ally, further expanding his family's influence across American media and entertainment.
For now, the 170 million Americans who scroll through TikTok daily can continue doing so, though whether this deal truly addresses the national security concerns that sparked the controversy remains an open question.
