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TikTok’s Chinese parent company, ByteDance, has signed a major deal with United States and global investors in a move aimed at preventing a long-threatened ban of the popular social media platform in America.
The development was disclosed to employees on Thursday by TikTok’s chief executive officer, Shou Zi Chew, through an internal memo.
According to him, the agreement involves the creation of a new joint venture that will oversee TikTok’s operations in the United States, addressing long-standing national security concerns raised by Washington.
Under the terms of the deal, a group of investors including US technology giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment company MGX will collectively own half of the joint venture.
ByteDance will retain a minority stake of 19.9 percent, while affiliates of existing ByteDance investors will control 30.1 percent of the business.
Oracle, Silver Lake, and MGX are each expected to hold a 15 percent stake. The agreement is scheduled to be finalised on January 22, a date that could mark the end of years of regulatory uncertainty surrounding TikTok’s presence in the United States.
The deal follows a previous arrangement unveiled in September, when US President Donald Trump delayed enforcement of a law that would have banned TikTok unless ByteDance sold off its US operations.
That law was driven by concerns that user data could be accessed by the Chinese government allegations that ByteDance has repeatedly denied.
In the memo to staff, TikTok described the agreement as a major win for its American user base, stating that it would allow “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
The White House had earlier revealed that Oracle would play a key role in the deal by licensing TikTok’s recommendation algorithm, a core part of the app’s technology.
Oracle, which was co-founded by billionaire Larry Ellison a known supporter of President Trump has previously worked with TikTok on data storage solutions aimed at keeping US user information within American borders.
For TikTok creators, businesses, and advertisers, the deal offers much-needed clarity after years of political tension and repeated threats of a shutdown.
The platform has become a central hub for entertainment, commerce, and cultural trends in the US, making the prospect of a ban highly controversial.
Industry analysts say the agreement represents a compromise between US security demands and ByteDance’s desire to retain a stake in one of its most profitable markets.
While questions remain about how the joint venture will operate in practice, the deal significantly reduces the immediate risk of TikTok being removed from app stores or blocked nationwide.
As the January deadline approaches, all eyes will be on regulators to ensure the agreement meets legal and security requirements. For now, TikTok appears to have secured a lifeline that keeps it active in one of its biggest global markets.
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