TikTok Secures Deal for US Ownership, Averting Potential Ban
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A landmark agreement has been reached to restructure TikTok’s US operations, placing majority ownership in the hands of American investors and potentially averting a nationwide ban. TikTok CEO Shou Chew informed employees on Thursday that ByteDance, the app’s Chinese parent company, has signed binding agreements to establish a new joint venture for the platform within the United States, fulfilling commitments made during the Trump administration.
Averting a US Ban Thru Restructuring
the deal, outlined in a memo obtained by NBC News, will result in the US version of TikTok being majority-owned by American investors. This move comes as a direct response to a bipartisan law passed by Congress in 2024, which mandated ByteDance to divest majority ownership or face a ban initially slated for January of this year. the Trump administration had previously delayed implementing the law while seeking a negotiated agreement with China.
Key Investors in the TikTok US Joint Venture
The investor group leading the charge includes tech giant Oracle, California-based private equity firm Silver Lake, and UAE investment firm MGX. Representatives from these firms did not instantly respond to requests for comment. The new structure will also be overseen by a “new seven-member majority-American board of directors,” according to Chew.
Data Security and Content Moderation Under New Oversight
The US joint venture will assume full responsibility for critical aspects of the platform’s operations within the country. As Chew detailed in his memo, this includes US data protection, algorithm security, content moderation, and software assurance. “It will also have the exclusive right and authority to provide assurances that content, software, and data for American users is secure,” Chew stated.
Path to Agreement and Timeline
The framework for this agreement was established in September when Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng reached a preliminary understanding. The final agreement is scheduled to close on January 22, one day before the deadline imposed by a recent order from former President Trump, which stipulated that “the Attorney General shall not take any action on behalf of the United states to enforce the Act for 120 days.”
Oracle’s Expanding influence and the Ellison Family
Oracle, a significant player in the joint venture, is controlled by tech billionaire Larry Ellison, whose fortune has surged thanks to the boom in artificial intelligence, reaching over $230 billion according to Bloomberg Billionaires. Ellison’s son, David, recently acquired Paramount Global with approval from the Trump administration and is currently pursuing a hos
Why: The deal was reached to address US national security concerns regarding TikTok’s Chinese ownership and potential data access by the Chinese government. A bipartisan law threatened a ban if ByteDance didn’t divest.
Who: Key players include TikTok CEO Shou Chew, ByteDance, US investors Oracle, Silver lake, and MGX, Treasury Secretary Scott Bessent, China’s Vice Premier He Lifeng, and former President trump.
What: ByteDance agreed to establish a new joint venture with American investors, giving them majority ownership of TikTok’s US operations. This includes control over data security, algorithm security, content moderation, and software assurance.
How did it end?: The agreement, finalized on January 22, averts a potential nationwide ban of
