WASHINGTON/BEIJING (FN) — TikTok’s Chinese parent company ByteDance has signed binding agreements with U.S. and global investors to operate its business in America, a move aimed at averting a ban on the popular video-sharing app. Chief executive Shou Zi Chew confirmed the deal in a memo to employees on Thursday.
Under the agreement, half of TikTok’s U.S. joint venture will be owned by investors including Oracle, Silver Lake, and Abu Dhabi-based MGX. ByteDance will retain a 19.9% stake, while Oracle, Silver Lake, and MGX will each hold 15%. Affiliates of existing ByteDance investors will control the remaining 30.1%.
The deal is scheduled to close on 22 January 2026, ending years of pressure from Washington to force ByteDance to divest its U.S. operations over national security concerns. It follows a framework unveiled in September, when President Donald Trump delayed enforcement of a law that would have banned TikTok unless it was sold.
In the memo, 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 previously stated that Oracle would license TikTok’s recommendation algorithm as part of the arrangement.
The path to the deal has been marked by delays. In April 2024, during President Joe Biden’s administration, Congress passed legislation requiring TikTok to be sold or banned. The law was set to take effect on 20 January 2025, but Trump repeatedly postponed its enforcement while negotiating a transfer of ownership. Trump later said he had spoken directly with Chinese President Xi Jinping, who approved the deal in principle.
Despite the agreement, TikTok’s future remained uncertain through late 2025 amid broader U.S.-China tensions over trade and technology. Analysts said the deal reflects a calibrated de-escalation between the two governments. “TikTok has become a bargaining chip in the wider U.S.-China relationship,” said Alvin Graylin, a lecturer at the Massachusetts Institute of Technology. “Beijing’s sign-off now looks less like capitulation and more like a way for both capitals to claim a win at home.”
Oracle and Silver Lake declined to comment, while MGX did not immediately respond to requests. The White House referred inquiries to TikTok.
The deal has drawn criticism from lawmakers. Senator Ron Wyden, a Democrat from Oregon, said the agreement would not protect American users’ privacy. “It’s unclear that it will even put TikTok’s algorithm in safer hands,” Wyden said. He opposed the 2024 law and was among those who lobbied to extend TikTok’s deadline earlier this year to give Congress more time to address security concerns.
TikTok said its recommendation algorithm will be retrained on U.S. user data to ensure feeds are free from outside manipulation. Still, skepticism remains among policymakers and users.
Small business owners, who rely heavily on TikTok for marketing, expressed cautious optimism. Tiffany Cianci, who has more than 300,000 followers and nearly 4 million likes on the platform, said she hopes the new investors will preserve the app’s value for entrepreneurs. “I hope small business owners are protected,” Cianci said. TikTok estimates more than 7 million small businesses in the U.S. use the app to reach customers.
Cianci added that TikTok’s profit-sharing terms are more favorable than those offered by competitors such as Meta. Over the past year, she has helped organize protests in Washington and online campaigns to save the app. “I reserve judgment on whether or not we have saved the app for those small businesses,” she said.
The deal also carries global significance. TikTok is widely used outside the United States, including in Nigeria, where millions of young people and entrepreneurs rely on the platform for entertainment, activism, and commerce. Analysts say securing TikTok’s future in the U.S. helps stabilize the app worldwide, protecting opportunities for Nigerian creators and small businesses. The platform has been a key driver of Afrobeats, Nollywood content and comedy skits reaching global audiences, strengthening Nigeria’s cultural influence abroad. At the same time, concerns about data privacy and algorithm control echo across Africa, where users are increasingly aware of how global tech politics affect their digital lives.
