TikTok Avoids US Ban With Major Investment Deal: What It Means for 170 Million American Users
TikTok has secured its future in America after striking a landmark deal with US and international investors, ending years of uncertainty about whether the popular app would be banned over national security concerns tied to its Chinese parent company, ByteDance. The agreement creates a new US-based entity that will take control of American operations, protecting the platform’s 170 million users, its largest and most lucrative market globally. TikTok CEO Shou Chew told employees in an internal memo that the new joint venture will receive major backing from tech giant Oracle, private equity firm Silver Lake, and Abu Dhabi’s MGX investment company. The ownership breakdown carefully navigates US legal requirements: New investor consortium: 50% stake Oracle, Silver Lake, and MGX: 15% each Existing ByteDance investor affiliates: Just over 30% ByteDance: Under 20% (the maximum allowed for Chinese companies) This US-based venture will handle all critical operations for American users, including data protection, algorithm security, content moderation, and software integrity. It will also manage certain global functions like e-commerce, advertising, and marketing. The deal resolves a multi-year standoff that began when US lawmakers raised alarms about potential Chinese government access to American user data and concerns over algorithmic influence. Legislation passed under President Biden mandated that ByteDance either sell TikTok’s US operations or face a complete ban. Former President Trump, who initially pushed for restrictions during his first term, later delayed enforcement deadlines multiple times, most recently extending them into January. Oracle’s executive chairman Larry Ellison, a Trump ally, played a central role in brokering the arrangement. Trump acknowledged at the time that while he wanted the deal to be “100 percent MAGA,” practical realities required compromise. With a planned closing date of January 22, the agreement largely confirms a White House announcement from September indicating a compliant deal had been reached. Chinese officials have remained tight-lipped, with the foreign ministry only stating that “China’s position on the TikTok issue is consistent and clear.” ByteDance has not yet commented publicly. Industry analysts see the deal as a workable compromise. Li Chengdong of technology consultancy Dolphin called keeping TikTok operational in the US “a victory” for ByteDance, potentially allowing the company to focus on artificial intelligence development and future stock market plans. However, Zhang Yi from research firm iiMedia cautioned that US regulators could still apply pressure through their oversight powers.









