TikTok CEO Shou Chew has informed employees that the company and its parent ByteDance have signed off on an agreement to spin off TikTok's US business. The deal, outlined in a September executive order by President Donald Trump, involves US investors taking majority control. It is set to close on January 22, 2026, though Chinese approval remains uncertain.
In September, President Donald Trump signed an executive order that finalized key terms for spinning off TikTok's US operations, aiming to address national security concerns over the app owned by Chinese company ByteDance. Three months later, the agreement has progressed further. According to Bloomberg, TikTok CEO Shou Chew shared in a memo to employees that TikTok and ByteDance have approved the deal for US business control.
The terms align with those Trump announced earlier this year. A consortium of US investors, including Oracle, Silver Lake, and MGX, will hold the majority stake in the new entity, while ByteDance retains a minority interest. Chew's memo states: “Upon the closing, the US joint venture, built on the foundation of the current TikTok US Data Security (USDS) organization, will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance.”
The closure is anticipated for January 22, 2026, marking nearly a year since Trump's initial executive order delayed a law mandating TikTok's sale or ban. Subsequent extensions have kept the process alive. However, Chinese officials' position is unclear. Trump claimed in September that China was "fully on board," but follow-up meetings yielded only vague responses. In October, China's Commerce Ministry indicated it would "work with the U.S. to properly resolve issues related to TikTok."
TikTok did not immediately respond to requests for comment. If completed, this would resolve ongoing tensions over the app's data practices and potential ties to the Chinese government.
