ByteDance has finalized a sweeping agreement to keep TikTok operating in the United States, striking a deal with Oracle, Silver Lake and Abu Dhabi-based investment firm MGX as the threat of a forced sale or nationwide ban reached a critical point, according to an internal company note reviewed by Axios.
The arrangement, expected to be completed by Jan. 22, establishes a new American joint venture designed to sever TikTok's U.S. operations from its Chinese parent while preserving the platform used by more than 170 million Americans. The deal follows months of escalating political pressure in Washington and repeated deadline extensions issued by President Donald Trump.
TikTok Chief Executive Shou Zi Chew confirmed to employees that ByteDance and the investment consortium had "formalised the legal contracts," thanking staff for their work and writing that their "efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the US and around the world," according to the internal message.
Under the ownership structure outlined in the note, U.S.-based investors will hold majority control of the new entity, while ByteDance's stake will fall below the 20% threshold mandated by U.S. law. The White House and TikTok declined to comment publicly on the agreement.
Ownership breakdown of the new U.S. venture includes:
- 50% held by a consortium of American backers
- Oracle, Silver Lake and MGX each taking a 15% stake
- ByteDance retaining 19.9%
- 30.1% allocated to partners of ByteDance's existing shareholders
The new U.S. company will be governed by a seven-member board, with a majority of directors based in the United States. According to the document, the venture will operate under safeguards intended to "protect Americans' data and US national security," a central demand of lawmakers who have warned that TikTok's ties to China posed unacceptable risks.
Oracle will oversee domestic data storage for U.S. users, and the company told employees that Americans would experience the "same experience as today." Businesses using TikTok to reach international audiences will not face disruption under the new structure, the note said.
One of the most sensitive elements of the agreement involves TikTok's recommendation algorithm. The internal document states that the app's code will be reworked using U.S.-based data to "ensure the content feed is free from outside manipulation," with the American entity assuming responsibility for content moderation and enforcement of community guidelines.
U.S. officials have long argued that TikTok's algorithm could be influenced by Beijing, a claim ByteDance has denied. Chinese authorities previously insisted that the technology remain subject to domestic export controls, complicating negotiations as Congress passed bipartisan legislation requiring TikTok to cut ties with its parent or face a ban.
The agreement closes a turbulent chapter that included TikTok briefly going dark, followed by a series of executive orders from President Trump extending the legal deadline despite questions about their statutory authority. A prior attempt to resolve the issue collapsed after China withdrew amid escalating trade tensions.
Market reaction was swift. Oracle shares rose $9.07, or about 5%, to $189.10 in late trading following news of the deal. Analysts said the outcome underscores TikTok's growing economic and political weight, particularly among younger Americans. A Pew Research Center study released this fall found that 43% of U.S. adults under 30 regularly get news from TikTok, a higher share than any other major social-media platform.
