TikTok has signed a joint venture agreement with a group of investors, enabling the video-sharing platform to continue operations in the United States and avert a ban tied to its Chinese ownership.
TikTok
The deal ends a prolonged dispute over TikTok’s future in the world’s largest economy, where the platform boasts over 170 million users, according to an internal memo obtained by AFP.
TikTok Chief Executive Shou Chew informed staff that the company and its Chinese parent ByteDance would establish a new US-based entity, backed by major investments from Oracle, Silver Lake, and Abu Dhabi-based MGX.
Oracle Executive Chairman Larry Ellison, a longtime ally of US President Donald Trump, plays a pivotal role in the arrangement.
New Entity to Handle Key US Functions
The US joint venture will oversee US data protection, algorithm security, content moderation, and software assurance, Chew stated in the memo.
It gains exclusive authority to ensure the security of content, software, and data for American users.
Under the ownership structure, a consortium of new investors will hold 50 percent, with Oracle, Silver Lake, and MGX each taking 15 percent stakes. Affiliates of existing ByteDance investors control just over 30 percent, while ByteDance retains slightly under 20 percent – the maximum allowed for a Chinese firm under US law.
TikTok Global’s US entities will manage global product interoperability and commercial operations, including e-commerce, advertising, and marketing.
Chew noted ongoing work ahead of the planned January 22 closing.
Background of Legislative Push and Trump’s Role
The agreement follows a law passed under former President Joe Biden, mandating ByteDance divest TikTok’s US operations or face a ban over national security fears. Lawmakers warned China could exploit the platform for data collection or algorithmic influence on US public opinion.
Trump, who first sought TikTok curbs during his initial term, delayed enforcement via executive orders, latest extending the deadline to January.
The deal aligns with a September White House statement confirming a compliant venture under the 2024 law.
“If I could make it 100 per cent MAGA, I would, but it’s not going to work out that way unfortunately,” Trump remarked then, publicly naming Ellison as key.
Ellison has resurfaced in political-business circles via Trump ties, including AI partnerships and family-linked media deals.
China’s foreign ministry, through spokesman Guo Jiakun, upheld its “consistent and clear” stance without direct comment. ByteDance offered no immediate response.
Analysts View Deal as Strategic Win
Analysts hail the compromise for safeguarding TikTok’s US market access.
“Keeping the US operation live is itself a victory” for ByteDance, said Li Chengdong, founder of consultancy Dolphin. It frees focus for AI projects and potential public listing.
iiMedia’s Zhang Yi stressed the US market’s “paramount importance” to TikTok but warned of lingering regulatory risks, noting possible “unfair demands.”
