In a move that averts a looming ban, the parent company of TikTok, ByteDance, has finalized an agreement to divest a majority stake in its US operations to non-Chinese investors. The deal, which involves tech giant Oracle, Emirati state-backed investment firm MGX, and US investment firm Silver Lake, among others, allows the popular video-sharing app to continue operating in America.
Under the terms of the agreement, the new joint venture, officially called TikTok USDS Joint Venture LLC, will be majority-owned by the American investors, with ByteDance retaining a 19.9% stake. This arrangement addresses concerns over China’s potential influence on the platform and its user data.
President Trump, who had previously threatened to ban TikTok in the US, has expressed his approval of the deal. In a post on Truth Social, he wrote, “I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice.” The president also credited the app’s popularity among young voters as a factor in his strong performance in the 2024 election.
As part of the agreement, US user data will be protected in Oracle’s secure cloud environment, and the content recommendation algorithm will be retrained, tested, and updated using US user data. American users will still be able to interact with the global TikTok community.
The deal marks the culmination of a long-running saga between the US and China over the fate of the popular app. President Trump had previously signed an executive order threatening a TikTok ban, which he repeatedly delayed as negotiations progressed. The new owners have political ties to the former president, with Oracle co-founder Larry Ellison being an ally and another investor, Revolution, having previously employed Vice President JD Vance.
The successful resolution of the TikTok saga is seen as a victory for the US administration, which has been grappling with the challenges posed by the rise of Chinese tech giants and the potential national security risks they may pose. The deal also represents a compromise that allows TikTok to continue operating in the US while addressing concerns over data privacy and national security.
