- TikTok says the deal will keep the platform available to over 170 million Americans
- ByteDance will remain a minority owner as global investors take larger stakes
- The agreement follows long political delays and tense US–China negotiations
TikTok has said a proposed ownership deal will allow more than 170 million Americans to continue using the app without disruption. In a memo to stakeholders, the company said the agreement would help users keep discovering content and opportunities as part of what it described as a global digital community.
The company presented the move as a way to protect users while securing TikTok’s future in the United States.
Under the proposed arrangement, ByteDance will keep a 19.9 per cent stake in the business. Oracle, Silver Lake, and Abu Dhabi-based investment firm MGX are each set to hold 15 per cent.
The remaining 30.1 per cent will be owned by affiliates linked to ByteDance’s existing investors. TikTok said this structure is meant to meet US regulatory demands while maintaining operational stability.
The White House has previously stated that Oracle, co-founded by Trump ally Larry Ellison, will license TikTok’s recommendation algorithm. The algorithm has been central to US security concerns, as lawmakers have questioned how user data and content are managed.
Officials believe Oracle’s involvement will reduce risks tied to foreign control of sensitive technology.
The agreement comes after prolonged uncertainty. In April 2024, under President Joe Biden’s administration, the US Congress passed a law requiring TikTok to be sold or banned over national security fears.
Although the law was set to take effect on January 20, 2025, President Donald Trump repeatedly delayed its enforcement while negotiations over ownership continued.
Trump said in September that he had spoken with Chinese President Xi Jinping and claimed Xi had approved the deal. Even so, questions remained after the two leaders met again in October, with broader tensions between Washington and Beijing still unresolved.
Trade disputes and geopolitical rivalry continued to cast doubt over TikTok’s long-term future.
MIT lecturer Alvin Graylin said TikTok has become part of wider US–China bargaining.
“TikTok has become a bargaining chip in the broader US–China relationship,” he said. Graylin added that China’s approval of the deal looks less like giving in and more like a careful step to ease tensions, allowing both governments to claim a win at home.
