TikTok has finalised a binding agreement to sell its American business to a consortium of US-based investors, securing the app's future operations in the United States and ending a protracted political and security saga.
The Structure of the Landmark Deal
According to an internal memo seen by news agencies, the new TikTok US joint venture will be 50% owned by the incoming investor group. This consortium comprises software giant Oracle, investment firm Silver Lake, and Abu Dhabi-based MGX, each taking a 15% stake.
The remaining ownership will see affiliates of existing ByteDance investors hold 30.1%, while TikTok's Chinese parent company, ByteDance, will retain a 19.9% share. The transaction is scheduled for completion on 22 January.
White House officials confirmed that Oracle, co-founded by prominent Donald Trump supporter Larry Ellison, will license a copy of TikTok's core recommendation algorithm. This expands Oracle's existing role in managing the vast trove of US user data, a key point in addressing national security concerns.
A Long and Politicised Journey to a Sale
This agreement concludes a process marked by significant delays and political intervention. The threat to TikTok first emerged in 2020 when then-President Donald Trump moved to ban the app, citing retaliatory measures against China's handling of the Covid-19 pandemic.
Although President Joe Biden signed a ban into law in April 2024, its implementation, set for 20 January 2025, was repeatedly postponed by the Trump administration as it worked to broker an ownership transfer. Trump stated in September that he had received a "go ahead" from Chinese President Xi Jinping after a phone conversation.
Broader Implications for Media and Politics
The deal has ignited fresh debate about media ownership concentration in the hands of politically aligned billionaires. Larry Ellison's pivotal role in the TikTok takeover follows a pattern where key media and platform assets are under the influence of figures supportive of Trump.
This landscape includes:
- Elon Musk's ownership of X (formerly Twitter).
- Mark Zuckerberg's control of Meta (Facebook and Instagram).
- Jeff Bezos's ownership of the Washington Post.
- David Ellison (Larry's son) driving changes at CBS.
The resolution, while ensuring TikTok's continuity for its millions of American users, underscores the deepening intersection of technology, data sovereignty, and political power in the digital age.
