In a landmark move that concludes a protracted political and commercial saga, TikTok's Chinese parent company has finalised an agreement to sell the platform's American operations. The deal ensures the popular video-sharing app will continue to be available to its over 170 million users in the United States.
Ending Years of Political Pressure
The agreement brings to a close years of intense scrutiny from US lawmakers. Concerns that Beijing-based ByteDance could be compelled to share American user data with the Chinese government, or manipulate the app's influential algorithm, prompted legislative action. President Joe Biden signed a law in 2024 that mandated ByteDance divest its US interests or face a nationwide ban.
This led to a deadline of January 2025 for a sale. When that passed without compliance, TikTok experienced a brief service blackout. The platform was swiftly restored after Donald Trump, on his first day back in office, signed an executive order to keep it operational, citing its "tremendous value," while negotiations continued behind the scenes.
The Structure of the New TikTok US
According to an internal company memo and reports from news agencies including Reuters, the ownership structure will undergo a significant transformation. ByteDance will sell just over 80% of TikTok's US assets to a consortium of three major American investors: software giant Oracle, investment firms Silver Lake and MGX.
These entities will form a new venture, to be named TikTok USDS Joint Venture LLC. The breakdown of ownership will be as follows:
- 50% held by the Oracle, Silver Lake, and MGX consortium.
- 30.1% held by affiliates of certain existing ByteDance investors.
- 19.9% retained by ByteDance itself.
The new entity will be governed by a seven-member board of directors, with a majority being American citizens. Crucially, the deal includes specific terms designed to "protect Americans' data and US national security." All data pertaining to US users will be stored on servers located within the country.
A New Chapter and Official Closure
The internal communication to staff, sent on Thursday, 18 December 2025, framed the deal as securing the app's future, allowing Americans to remain part of a "vital global community." The transaction is scheduled to officially close on 22 January 2026, as noted in the memo seen by Sky News' US partner network, NBC News.
This resolution draws a line under a major source of tension in US-China tech relations. It transforms TikTok's US operations into a predominantly American-owned enterprise, directly addressing the core data sovereignty and security concerns raised by politicians and intelligence officials. The platform can now operate without the immediate threat of a ban, though it will likely remain under close regulatory observation.
