TikTok has taken steps to avoid a ban in the United States after its Chinese parent company, ByteDance, signed binding agreements with American and international investors to restructure the app’s US operations.
The deal, disclosed in a memo by TikTok chief executive Shou Zi Chew, is expected to close on 22 January.
Under the agreement, a new joint venture will run TikTok’s US business. Investors including Oracle, Silver Lake and Abu Dhabi-based MGX will jointly own 50 percent of the entity. ByteDance will retain a 19.9 percent stake, while affiliates of existing investors will hold the rest.
TikTok said the deal would allow “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community”.
ALSO READ: US TikTok awards: Keith Lee named creator of the year
The move follows a 2024 US law that ordered a ban unless ByteDance sold TikTok’s US operations over national security concerns. Enforcement of the ban, initially set for January 2025, was delayed by President Donald Trump to allow negotiations to continue.
The White House has previously said Oracle would license TikTok’s recommendation algorithm under the agreement.
Despite the deal, some lawmakers remain critical. Senator Ron Wyden of Oregon said it would not do “a thing to protect the privacy of American user” and questioned whether the algorithm would be safer.
Analysts say the agreement reflects broader US China tensions. “TikTok has become a bargaining chip in the wider US China relationship,” said MIT lecturer Alvin Graylin.
TikTok says more than seven million small businesses in the US rely on the platform, though some users say they are still watching closely as the deal moves toward completion.