TikTok’s parent company, ByteDance, has reached a major agreement to sell a controlling stake in its American operations to a group of US and global investors, the company’s chief executive, Shou Zi Chew, announced to staff on Thursday.
According to a memo shared with employees, the new joint venture will be co-owned by Oracle, Silver Lake, and the Abu Dhabi-based investment firm MGX, with ByteDance retaining a 19.9% share. Oracle, Silver Lake, and MGX will each hold 15%, while 30.1% will remain with affiliates of ByteDance’s current investors.
The move comes after years of pressure from Washington over national security concerns and marks a key step in resolving tensions between the US and TikTok’s Chinese owner. “Over 170 million Americans will continue discovering a world of endless possibilities as part of a vital global community,” the memo said, highlighting the deal’s promise to keep the platform accessible in the US.
The agreement mirrors a plan first announced in September, when former President Donald Trump delayed a law that threatened to ban TikTok unless it was sold. Oracle, co-founded by Trump supporter Larry Ellison, is expected to license TikTok’s recommendation algorithm under the terms of the deal.
The sale, which is scheduled to close on 22 January, follows a series of legal and political maneuvers. In April 2024, under President Joe Biden’s administration, Congress passed legislation that would have banned the app unless it was divested from ByteDance.
The law’s implementation was delayed several times as negotiations continued.
Trump, speaking in September 2024, said he had discussed the matter directly with China’s President Xi Jinping, who gave the deal his approval.
The White House referred queries to TikTok, while Oracle declined to comment on the transaction.
The agreement ends a long period of uncertainty over TikTok’s future in the US and sets the stage for the app to continue its operations under a new ownership structure, addressing ongoing concerns about data security and foreign influence.
