ByteDance, the Chinese technology company that owns TikTok, has signed binding agreements to create a new joint venture that will operate the social media platform in the U.S., marking a significant turning point in the yearslong political and legal battle over the app’s future. According to NBC News, TikTok CEO Shou Chew informed employees in an internal memo on Thursday that the agreement fulfills a prior commitment reached with the Trump administration.
Under the deal, the U.S. version of TikTok will become majority-owned by American investors, satisfying the core requirement of a bipartisan law passed by Congress in 2024 that sought to address national security concerns tied to the app’s Chinese ownership. The new investor group includes Oracle, private equity firm Silver Lake and UAE-based investment firm MGX.
TikTok U.S. will also be overseen by a new seven-member board of directors, a majority of whom will be Americans. In his memo, Chew said the U.S. joint venture will be responsible for data protection, algorithm security, content moderation, and software assurance, and will have exclusive authority to certify that American user data and content remain secure.
One TikTok employee said reaction among U.S.-based staff was generally positive, though many employees in Asia and Europe had not yet reviewed the memo or weighed in on the agreement. Representatives for Oracle, Silver Lake and MGX did not immediately respond to requests for comment, and neither the White House nor the Treasury Department provided an immediate response.
The deal follows a framework agreement reached in September between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, clearing the way for American investors to take control of TikTok’s U.S. operations. The negotiations were part of broader efforts to resolve long-standing concerns among U.S. lawmakers and intelligence officials that ByteDance’s ties to China could pose a national security risk.
Those concerns intensified as TikTok grew to more than 170 million users in the United States, giving the platform access to vast amounts of personal and behavioral data. In response, Congress passed legislation in 2024 requiring ByteDance to divest majority ownership of TikTok’s U.S. business or face a nationwide ban. The Supreme Court upheld the law in January, rejecting arguments that a ban would violate free speech protections.
The threat of enforcement briefly became reality on Jan. 18, when TikTok went offline for U.S. users for about 24 hours, triggering widespread backlash from creators and users. President Donald Trump later announced he would delay enforcement through an executive order, prompting TikTok to restore service ahead of his inauguration. The administration subsequently extended the enforcement deadline several times while negotiations with China continued.
The current extension expires on Jan. 23, and Chew told employees the agreement is expected to close one day before that deadline.
Oracle, one of the largest investors in the new joint venture, is controlled by billionaire Larry Ellison, whose fortune has surged alongside the artificial intelligence boom. Bloomberg has reported that Ellison’s net worth now exceeds $230 billion, underscoring Oracle’s growing influence in the technology sector. Oracle has previously played a key role in housing TikTok’s U.S. user data as part of earlier security arrangements.
