TikTok owner signs deal to avoid US ban

ByteDance has signed binding agreements with American and global investors to operate TikTok in the United States, the video platform's chief executive told employees on Thursday. The deal is slated to close on January 22, 2025, and would end years of pressure from Washington to force a sale over national security concerns.

Under the terms, ByteDance will retain 19.9% of the business, while Oracle, Silver Lake and Abu Dhabi-based MGX will hold 15% each. An affiliate group tied to existing ByteDance investors will own about 30.1%. The memo describing the arrangement also states that half of the joint venture would be owned by a group of investors including Oracle, Silver Lake and MGX. The White House has said Oracle will license TikTok's recommendation algorithm as part of the deal.

The deal comes after a series of delays. In 2024, during President Joe Biden's administration, the U.S. Congress passed a law to ban the app unless it was sold. The law was slated to take effect on January 20, 2025 but was postponed multiple times by then-President Donald Trump while negotiations to transfer ownership progressed. Trump has said he spoke with China's President Xi Jinping, who he claimed gave the deal his go-ahead. The fate of the platform remained unclear after leaders met face to face in October amid broader U.S.-China tensions on trade and other issues.

Analysts characterized TikTok as a bargaining chip in the broader U.S.-China relationship. Alvin Graylin, a lecturer at the Massachusetts Institute of Technology, said the current structure and the licensing of the algorithm could be read as calibrated de-escalation that lets both capitals claim a win at home. The White House referred questions to TikTok; Oracle and Silver Lake declined to comment, and MGX did not respond to requests for comment.

Critics contended the arrangement would not fully address privacy concerns. Senator Ron Wyden, a Democrat from Oregon, said the deal would not do “a thing to protect the privacy of American user.” Wyden opposed the 2024 law and supported extending the deadline to allow Congress more time to mitigate perceived threats from China. He also noted the risk that the algorithm could still be subject to external influence despite safeguards.

Some users and small-business owners welcomed the prospect of continuity. Tiffany Cianci, a TikTok creator and small-business owner with tens of thousands of followers, said she hopes the investors preserve the platform’s user experience and protections for entrepreneurs. Cianci added that TikTok has been a valuable channel for promotion and that she would reserve judgment until she sees how the transition affects creators and product terms. TikTok has said more than seven million small businesses market their products on the platform in the United States.

The deal is a characteristic example of how technology platforms intersect with national security and diplomacy. TikTok has become a focal point in the broader U.S.-China relationship, with policy makers arguing over data security, content moderation and influence operations. Proponents say the agreement could maintain access to a large U.S. audience and protect American jobs, while opponents warn that structural changes and algorithm licensing may not sufficiently shield sensitive information from exposure or manipulation. As regulators review the structure, algorithm licensing, and data-flow safeguards, the company will face ongoing scrutiny from lawmakers assessing whether the arrangement meets national security requirements.