ByteDance reaches agreement with US investors to secure TikTok’s US operations

TikTok’s parent company, ByteDance, has reached binding agreements with US and global investors to continue operating in the United States, according to CEO Shou Zi Chew. The joint venture will have half of its shares held by investors including Oracle, Silver Lake, and Abu Dhabi-based MGX, while ByteDance will retain 19.9% ownership. The deal, set to close on 22 January, resolves years of US government pressure over national security concerns and comes after multiple delays. TikTok’s recommendation algorithm will be licensed to Oracle and retrained on US user data to prevent external manipulation. The agreement is seen as a step toward de-escalating US-China tensions, though critics like Senator Ron Wyden argue it does not fully protect American users’ privacy. The deal is expected to maintain operations for over 170 million US users and safeguard the interests of small businesses, many of whom use TikTok for marketing. The move ensures that TikTok can remain accessible in the US, despite prior legislation aiming to ban the app unless it was sold to US investors.