TikTok US joint venture agreed with Oracle-backed investors to keep the platform operating in America and avert a ban over Chinese ownership
TikTok, the social media platform owned by Chinese technology company ByteDance, said it had signed a joint venture agreement with a group of investors to allow continued operations in the United States and avert the threat of a ban linked to its Chinese ownership.
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In an internal memo seen by AFP, TikTok chief executive Shou Zi Chew told employees that TikTok and ByteDance had agreed to create a new US-based entity backed by Oracle, private equity firm Silver Lake and Abu Dhabi investment group MGX.
The TikTok US joint venture will assume responsibility for protecting American user data, securing the platform’s algorithm, moderating content and assuring software integrity, Chew said.
Chew added that the new entity would hold exclusive authority to certify that content, software and data used by American users are secure, a key demand of US lawmakers.
Under the ownership structure outlined in the memo, a consortium of new investors including Oracle, Silver Lake and MGX will control half of the venture, with each holding a 15 percent stake.
Affiliates of existing ByteDance investors will own just over 30 percent, while ByteDance itself will retain just under 20 percent, the maximum stake permitted for a Chinese company under US law.
TikTok Global’s US entities will also oversee certain global product functions and commercial activities, including e-commerce, advertising and marketing, according to the memo.
Chew told staff that further work remains ahead of a planned closing date of January 22.
The arrangement follows legislation passed under former president Joe Biden requiring ByteDance to sell TikTok’s US operations or face a ban in the country, citing national security concerns. US policymakers have repeatedly warned that Beijing could exploit the app to harvest data from Americans or influence public opinion through its powerful algorithm.
President Donald Trump, who delayed enforcement of the law through a series of executive orders, most recently extended the deadline into January.
Oracle executive chairman and founder Larry Ellison, a long-time ally of Trump, had been publicly named by the administration as a central figure in the proposed deal.
The agreement largely confirms a White House announcement made in September that said a framework meeting the requirements of the 2024 law had been reached with China. Trump later acknowledged that full US ownership was unlikely, describing the outcome as a compromise.
The memo marks the first clear indication that TikTok itself has formally signed on to the arrangement, a step that would have required approval from the Chinese government.
ByteDance did not immediately comment, but analysts said the deal represented a significant reprieve for the company.
“Keeping the US operation live is itself a victory,” said Li Chengdong, founder of Chinese technology consultancy Dolphin, noting that the United States remains TikTok’s most lucrative market.
Li added that resolving the issue could allow ByteDance to refocus on artificial intelligence projects and revive plans for a potential initial public offering.
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Zhang Yi, an analyst at research firm iiMedia, cautioned that the agreement did not eliminate future risks, warning that US regulators could still apply pressure through oversight and compliance demands.
