TikTok Strikes Deal to Keep Its US Operations Afloat

Sat Dec 20 2025 02:26:52 GMT+0200 (Eastern European Standard Time)

In a move to avoid a potential ban in the US, TikTok's parent company ByteDance has signed a significant deal with American investors that will reshape its operations in North America.

TikTok's parent company, ByteDance, is set to retain operations in the United States after signing a binding deal with investors including Oracle and Silver Lake. The agreement, aimed at addressing national security concerns, comes as a breath of relief for its 170 million American users. TikTok will maintain a minority stake while US firms acquire a majority. This deal reflects ongoing tensions in U.S.-China relations and raises questions about user privacy and platform management in the future.

TikTok's Chinese owner ByteDance has signed binding agreements with US and global investors to operate its business in America, TikTok's boss told employees on Thursday.

Half of the joint venture will be owned by a group of investors, including Oracle, Silver Lake and the Emirati investment firm MGX, according to a memo sent by chief executive Shou Zi Chew.

The deal, which is set to close on January 22, 2025, would end years of efforts by Washington to force ByteDance to sell its US operations over national security concerns.

It is in line with a deal unveiled in September, when US President Donald Trump delayed the enforcement of a law that would ban the app unless it was sold.

In the memo, TikTok said the deal will enable over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.

Under the agreement, ByteDance will retain 19.9% of the business, while Oracle, Silver Lake and MGX will hold 15% each, and another 30.1% will be held by affiliates of existing ByteDance investors.

The White House previously stated that Oracle, which was co-founded by Trump supporter Larry Ellison, will license TikTok's recommendation algorithm as part of the deal.

This agreement follows a series of delays, with the US Congress having passed a law to ban the app over national security concerns, unless it was sold. The law was initially set to go into effect on January 20, 2025, but was postponed multiple times by Trump.

The platform's future remained unclear after key meetings between US leaders and China's President Xi Jinping, with discussions around trade and relations potentially impacting the deal.

Some U.S. lawmakers have criticized the deal, suggesting it doesn't sufficiently protect American users’ privacy. The concerns highlight the skepticism surrounding data protection, especially with TikTok's algorithm being retrained using American user data.

Small business owners have also expressed mixed feelings about the future, hoping the platform continues to support their growth and marketing abilities.

TikTok has emphasized that over seven million small businesses flourish on the platform in the US, and many are hopeful for a smooth transition.