TikTok’s Chinese owner, ByteDance, has signed binding agreements with U.S. and global investors to keep the app running in the United States, according to a memo sent to employees by CEO Shou Zi Chew.
The new U.S.-based joint venture will be partly owned by investors including Oracle, Silver Lake, and Abu Dhabi investment firm MGX. ByteDance will keep a 19.9 per cent stake, while the rest will be split among the new investors and existing ByteDance partners. The deal is expected to close on Jan. 22.
The agreement could end years of U.S. efforts to force the sale of TikTok over national security concerns. It follows a plan announced last fall, when U.S. President Donald Trump delayed a law that would have banned the app unless it was sold.
TikTok said the deal will allow more than 170 million Americans to keep using the platform. Under the agreement, Oracle is expected to help manage TikTok’s recommendation algorithm, which will be retrained using U.S. user data.
Some lawmakers remain skeptical. Senator Ron Wyden said the deal may not do enough to protect user privacy. Small business owners who rely on TikTok for sales also say they are waiting to see how the changes will affect them.
