TikTok owner signs US deal

TikTok’s Chinese owner, ByteDance, has signed agreements with US and global investors to keep the app running in the United States, TikTok’s chief executive, Shou Zi Chew, has told staff.

According to a memo sent to employees on Thursday, the deal will see a new joint venture take control of TikTok’s US operations. Half of the business will be owned by investors including Oracle, Silver Lake and Abu Dhabi-based investment firm MGX.

The agreement, expected to be completed on January 22, is aimed at ending years of pressure from Washington over national security concerns. US lawmakers had pushed for ByteDance to sell TikTok’s US business or face a nationwide ban.

Under the deal, ByteDance will retain a 19.9% stake, while Oracle, Silver Lake and MGX will each hold 15%. Affiliates of existing ByteDance investors will own the remaining 30.1%.

TikTok said the agreement would allow more than 170 million Americans to continue using the app. It also confirmed that TikTok’s recommendation algorithm would be licensed to Oracle and retrained using US user data.

The deal follows repeated delays after a law passed in 2024 sought to ban TikTok unless it was sold. President Donald Trump later postponed enforcement of the law while negotiations continued.

Some US lawmakers have criticised the agreement, saying it does not do enough to protect user privacy. However, TikTok says the new structure will help address security concerns.

TikTok remains a major platform for small businesses in the US, with the company saying over seven million businesses rely on the app to market their products.