In a monumental resolution to years of geopolitical tension, TikTok’s Chinese parent company ByteDance has formally agreed to divest the majority of its U.S. operations to a consortium of American and global investors. The arrangement, detailed in an internal memo from CEO Shou Zi Chew to staff on Thursday, culminates extensive negotiations prompted by longstanding national security concerns in Washington.
The newly formed joint venture will see ByteDance’s ownership drop to 19.9%, effectively transferring control to U.S. entities. Technology giant Oracle, investment firm Silver Lake, and Abu Dhabi-based strategic investment company MGX will each acquire 15% stakes. The remaining 30.1% will be distributed among existing ByteDance investor affiliates, creating a diversified ownership structure that satisfies regulatory requirements.
This agreement aligns with preliminary terms disclosed in September 2024, when President Donald Trump intervened to postpone enforcement of legislation that would have prohibited the application’s operations without a sale. The original ban, enacted during the Biden administration in April 2024, was scheduled to take effect on January 20, 2025, but faced multiple administrative delays to facilitate negotiation progress.
A critical component involves Oracle’s licensing of TikTok’s proprietary recommendation algorithm, ensuring operational continuity while addressing security apprehensions regarding foreign control over user data and content dissemination mechanisms. The White House has acknowledged this technological arrangement as vital to protecting national interests.
The transaction is scheduled for formal closure on January 22, 2025, preserving platform access for TikTok’s extensive American user base of over 170 million. Company leadership emphasizes that this resolution safeguards both national security priorities and the application’s role in global digital community building.
International diplomatic engagement played a role in the outcome, with President Trump noting direct communication with Chinese President Xi Jinping, who reportedly endorsed the ownership transition. Neither the White House nor Oracle provided additional commentary when solicited for response.