WASHINGTON – TikTok announced that it reached an agreement to sell its US business operations in a bid to resolve the ongoing threat of a ban in the country, the international media reported on .
The deal, negotiated by TikTok’s parent company ByteDance, involves the creation of a new company where American firms will hold a controlling stake.
Under the terms of the agreement, investors including Oracle, Silver Lake, and UAE-based MGX will collectively own 80.1% of the shares in the new company, while ByteDance will retain a 19.9% stake. This move is expected to alleviate concerns about national security raised by USlawmakers and officials, who had previously considered blocking TikTok due to its ties to China.
The announcement effectively removes the immediate risk of a TikTok ban in the US, which had loomed over the app for several years. The issue first emerged during former President Donald Trump’s first term when he warned that TikTok might be banned due to fears over the handling of user data.
In 2024, the US House of Representatives passed a law that would have banned TikTok unless it sold its U.S. operations to an American company. The law raised uncertainty about TikTok’s future in the US, especially after the District Court upheld the legal framework for such a ban.
However, President Trump intervened on the first day of his second term, issuing an executive order to temporarily delay the ban for three months. Since then, discussions between ByteDance and US investors have continued in an effort to reach a resolution.
In September, Trump signed another executive order proposing a plan for US investors to acquire TikTok, which ultimately led to the deal being finalized.
In a statement, TikTok’s Global Head of Operations and Trust and Safety, Adam Presser, was named CEO of the new company. TikTok CEO Shou Chew will also join the company’s board of directors.
The newly formed US-based company will operate under strict guidelines to ensure the protection of US national security data, with measures in place to address data privacy concerns.
The app’s recommendation algorithm will remain intact but will be adjusted to align with the data protection standards required for US users.
A White House official confirmed that both the US and Chinese governments had signed off on the agreement.
However, the Chinese government has not yet issued an official statement regarding the deal.
In a social media post, President Trump thanked his Chinese counterpart for their cooperation in finalizing the agreement, marking a significant step toward resolving the dispute.
