In a landmark move that concludes years of political and security wrangling, TikTok has formally agreed to sell its American operations to a consortium of US investors. The deal transfers control of the popular video-sharing platform's US entity away from its Chinese parent company, ByteDance.
The Structure of the Landmark Agreement
The agreement establishes a new joint venture to oversee TikTok's US business. The controlling stake of 45 percent will be held by American firms Oracle and Silver Lake, alongside Abu Dhabi's strategic investment vehicle, MGX. This structure was designed to satisfy US regulatory concerns over foreign control.
Affiliates of ByteDance's current investors will retain approximately one-third of the US company. Meanwhile, ByteDance itself will keep a minority share of nearly 20 percent, maintaining a financial interest but ceding operational control.
A Long Road to Resolution
This sale brings to an end a protracted effort by US lawmakers to force ByteDance to divest its American operations. The push was driven by fears, voiced by members of Congress from both parties, that the Chinese government could access sensitive user data or manipulate the app's algorithm to spread propaganda.
These concerns culminated in the Protecting Americans From Foreign Adversary Controlled Applications Act, which was passed with bipartisan support and signed into law by President Joe Biden in 2024. The legislation created the legal framework compelling a sale or ban.
Political Maneuvering and Extended Deadlines
The path to this deal involved significant political intervention. In April of this year, President Donald Trump granted a crucial 75-day extension to the original deadline. This move was intended to prevent the app from being shut down in the US while the complex negotiations and regulatory approvals were finalised.
The final arrangement mirrors a framework tentatively agreed upon by the White House and the Chinese government in September, which paved the way for a US investor group led by Andreessen Horowitz, Silver Lake, and Oracle to assume control.
The completion of this sale represents a major shift in the global tech landscape, resolving one of the most high-profile disputes at the intersection of technology, data security, and international diplomacy. It ensures TikTok's continued operation for its millions of American users while placating national security authorities in Washington.
