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ByteDance, TikTok’s parent company in China, has entered into binding agreements to establish a joint venture that will transfer control of TikTok’s U.S. operations to American and international investors. This move marks a significant step toward preventing a potential U.S. ban and resolving years of ongoing uncertainty.
This development is a crucial milestone for the popular short-video platform, which is widely used by over 170 million Americans. The journey to this point began in August 2020, when then-President Donald Trump attempted to ban the app due to national security concerns, though that effort was unsuccessful.
The terms of this deal are consistent with those announced in September, when Trump postponed enforcement of a law requiring the sale of TikTok’s U.S. assets until January 20. The deal was also deemed compliant with the divestiture provisions stipulated under a 2024 law.
Valued at approximately $14 billion, the new U.S.-based company will see American and global investors, including cloud computing firm Oracle, private equity group Silver Lake, and Abu Dhabi-based MGX, holding an 80.1% stake. ByteDance will retain the remaining 19.9%.
Questions persist regarding the extent of ByteDance’s involvement in the new setup. While the White House stated the joint venture would operate independently in September, concerns remain about the ongoing business ties between the joint venture and ByteDance. The White House has directed inquiries to TikTok, which claims that the joint venture will manage data security, content moderation, and algorithm integrity independently. Additionally, TikTok’s global U.S. entities will handle certain product integration and commercial activities, such as advertising and e-commerce, separately.
Expert Rush Doshi noted ambiguity around whether TikTok’s algorithm has been transferred, licensed, or remains under Beijing’s control, with Oracle purportedly providing monitoring services. Reports from Chinese media suggest ByteDance will continue to have significant operational influence, potentially establishing a U.S. entity to receive revenue from the joint venture.
The deal, expected to close by January 22, aims to put an end to lengthy efforts to have ByteDance sell off its U.S. operations due to national security worries. Rep. John Moolenaar, Republican chair of the House China Committee, has indicated plans to host the new TikTok leadership at a hearing scheduled for 2026.
The agreement also includes provisions for ByteDance to appoint one member to the new company’s seven-member board, with Americans holding the majority of seats. Oracle will act as a “trusted security partner,” overseeing compliance and safeguarding U.S. user data within a secure cloud environment based in the United States.
Former President Trump has publicly credited TikTok with aiding his reelection last year and maintains a significant follower base of over 15 million on his personal TikTok account. The White House launched an official TikTok account in August. Meanwhile, some critics, including Senator Elizabeth Warren, have raised concerns about the transparency of the deal. Warren questioned whether Trump’s close ties with billionaire Oracle CEO Larry Ellison and other wealthy investors might have influenced the agreement.
Trump has also highlighted that other prominent investors, such as Michael Dell of Dell Technologies and media mogul Rupert Murdoch, may be involved, though their participation in the final arrangement remains unclear.
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