ByteDance reaches agreement to sell majority stake of TikTok US to American investors

TikTok’s Chinese parent company, ByteDance, has signed an agreement to sell a majority stake of its US operations to American investors, ensuring that the popular video platform can continue operating in the United States. The deal, expected to close on 22 January 2026, comes after years of uncertainty following US government concerns about data security and potential influence from Chinese authorities. The sale was mandated by a law signed by President Joe Biden in 2024, which required ByteDance to divest its US business or face a ban. The new venture, TikTok USDS Joint Venture LLC, will be majority-owned by a consortium of US investors including Oracle, Silver Lake, and MGX, holding 50%, while certain existing ByteDance affiliates will retain 30.1% and ByteDance itself will keep 19.9%. The venture will have a seven-member majority-American board and will implement measures to protect American user data and national security, with all US user data stored locally. The internal memo highlighted that the deal will allow over 170 million American users to continue engaging with the platform.