TikTok has finalised a long-awaited agreement to sell its American business to a consortium of US investors, securing the future of the popular video-sharing app in the United States.
The Structure of the Landmark Deal
According to an internal memo seen by news agencies, the social media platform's parent company, ByteDance, has signed binding agreements with three key investors: software giant Oracle, investment firm Silver Lake, and Abu Dhabi-based MGX. The deal is scheduled for completion on 22 January.
The new TikTok US joint venture will see ownership split between the new and existing stakeholders. A consortium comprising Oracle, Silver Lake, and MGX will collectively hold a 50% stake, with each taking 15%. Affiliates of current ByteDance investors will hold 30.1%, while ByteDance itself will retain a 19.9% share.
Political Backdrop and Algorithm Concerns
The agreement concludes a protracted political and regulatory saga. The White House has indicated that Oracle, co-founded by prominent Donald Trump supporter Larry Ellison, will license a copy of TikTok's core recommendation algorithm. This expands Oracle's existing role in managing the vast trove of US user data.
Ellison's involvement has sparked wider debate about media ownership concentration. Critics point to the growing influence of pro-Trump billionaires, noting Ellison's son David's changes at CBS, Elon Musk's control of X, and Mark Zuckerberg's oversight of Meta's platforms.
The path to this deal was turbulent. In 2020, then-President Trump threatened a TikTok ban over tensions with China. Later, under the Biden administration, a ban was signed into law in April 2024 over national security fears, with an initial effective date of 20 January 2025. Implementation was repeatedly delayed by the Trump administration as it negotiated this ownership transfer.
Implications and Next Steps
This sale represents a significant de-escalation in the US-China tech standoff concerning TikTok. For the app's millions of American users and creators, it ensures operational continuity, averting a potential shutdown.
The partnership with Oracle, framed as a data security solution, appears to be the compromise that satisfied US regulatory concerns. All eyes will now be on the 22 January closing date and the subsequent integration of the new ownership structure.
