In a memo, TikTok said the agreement would allow “more than 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
Under the proposed deal, ByteDance will retain a 19.9% stake in the business. Oracle, Silver Lake, and Abu Dhabi–based investment firm MGX will each hold 15%, while the remaining 30.1% will be owned by affiliates of existing ByteDance investors, according to the memo.
The White House has previously said that Oracle—co-founded by Trump supporter Larry Ellison—will license TikTok’s recommendation algorithm as part of the arrangement.
The agreement follows months of delays and political uncertainty. In April 2024, during President Joe Biden’s administration, the US Congress passed legislation requiring TikTok to be sold or banned over national security concerns.
The law was scheduled to take effect on 20 January 2025 but was repeatedly postponed by President Donald Trump as his administration negotiated a transfer of ownership.
Trump said in September that he had spoken with Chinese President Xi Jinping, claiming Xi had approved the deal. However, TikTok’s future remained uncertain after the two leaders met in person in October, amid continued tensions between Washington and Beijing over trade and other issues.
“TIkTok has become a bargaining chip in the broader US–China relationship,” said Alvin Graylin, a lecturer at the Massachusetts Institute of Technology.
“With recent easing of tensions, Beijing’s approval of the ownership structure and algorithm licensing appears less like capitulation and more like a calibrated de-escalation—allowing both governments to claim a domestic win.”
By James Kisoo
