TikTok has reached a binding agreement with American and global investors to operate its business in the United States, marking a major step toward resolving long-standing national security concerns around the platform, as per reports by BBC.
In a memo to employees, TikTok chief executive Shou Zi Chew said parent company ByteDance will retain a 19.9% stake in the US business, while a consortium including Oracle, Silver Lake and Abu Dhabi-based MGX will together control half of the venture. The deal is expected to close on 22 January.
The agreement follows prolonged political pressure in Washington, where lawmakers sought to ban TikTok unless it divested its US operations. Enforcement of the ban was repeatedly delayed after former US President Donald Trump indicated support for a negotiated ownership structure.
Under the arrangement, TikTok’s recommendation algorithm will be licensed to Oracle and retrained using US user data, though critics such as Senator Ron Wyden argue the deal does not go far enough in protecting user privacy.
For creators and small businesses, the move brings cautious relief. TikTok says more than seven million US businesses depend on the platform, though some creators remain uncertain about how new ownership may affect monetisation and reach.
While TikTok remains banned in India, the development is being closely watched by creators and policymakers alike, as it highlights how global platforms are reshaping ownership models to navigate geopolitical and data security pressures.