ByteDance has confirmed a deal to transfer majority control of TikTok's US operations to American investors, averting a potential ban next year. The agreement involves key players like Oracle and Silver Lake, with the Chinese parent company retaining a minority stake. The move follows years of national security concerns and negotiations under President Trump.
TikTok's parent company, ByteDance, has signed agreements to spin off its US business, granting US owners 80.1 percent control while ByteDance keeps a 19.9 percent stake and one seat on a seven-member board, the majority of whom are Americans. This deal, reported by Reuters and confirmed in an internal memo from CEO Shou Zi Chew, is set to close on January 22 and values the new entity at around $14 billion, according to Vice President JD Vance.
Under the terms, US investors including Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX will license TikTok's algorithm. Oracle, led by Trump ally Larry Ellison, will store and safeguard all US user data in a secure cloud environment, ensuring no Chinese access for spying or content manipulation. The US-operated company will handle data protection, algorithm security, content moderation, and software, while ByteDance manages global product features, e-commerce, advertising, and marketing.
The agreement caps prolonged uncertainty sparked by a 2020 law requiring divestiture to avoid a ban, which Trump delayed through executive orders. In his memo, Chew emphasized continuity: "With these agreements in place, our focus must stay where it’s always been — firmly on delivering for our users, creators, businesses and the global TikTok community."
Lawmakers remain skeptical. Sen. Elizabeth Warren accused Trump of enabling a "billionaire takeover of TikTok," handing control to his allies. Sen. Chuck Grassley vowed a "hard line" if it violates the law, and Rep. John Moolenaar plans hearings on security risks, particularly ByteDance's algorithm role. Trump has suggested tweaking the app to be "100 percent MAGA," raising bias concerns. As users transition—potentially 170 million—the app may face bugs, per reports.