adverts
TikTok’s Chinese parent company, ByteDance, has reached binding agreements with US and global investors for a majority stake in its American operations, signalling a resolution to years of uncertainty over the platform’s future in the United States.
In a memo sent to employees on Thursday, TikTok CEO Shou Zi Chew outlined the structure of the joint venture, which is scheduled to close on January 22, 2026.
Under the deal, a group of investors including Oracle, Silver Lake, and Emirati firm MGX will collectively hold a majority share of the US business, while ByteDance retains 19.9%. Existing ByteDance investors will hold 30.1%, and Oracle, Silver Lake, and MGX will each hold 15%.
adverts
The agreement follows a long-running saga over US national security concerns, which prompted Congress to pass legislation in April 2024 to ban the app unless it was sold.
The ban, originally set to take effect on January 20, 2025, was delayed multiple times as US administrations negotiated a resolution.
The deal also stipulates that Oracle will license TikTok’s recommendation algorithm, a provision aimed at alleviating fears of foreign influence over American user data. TikTok has pledged to retrain its algorithm on US user data to ensure feed integrity and prevent outside manipulation.
“This deal enables over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” Chew wrote in the memo, emphasising the platform’s continued commitment to its users and content creators.
Despite the agreement, critics remain sceptical. Senator Ron Wyden (D-Oregon) described the deal as insufficient to protect American users’ privacy, noting that the algorithm’s safety remains uncertain. “It’s unclear that it will even put TikTok’s algorithm in safer hands,” he said, warning that the measures may fall short of addressing the core national security concerns.
Small business owners who rely on TikTok for marketing have welcomed the resolution but voiced caution. Tiffany Cianci, who boasts over 300,000 followers and nearly four million likes, expressed hope that the platform will continue to support small entrepreneurs, noting that TikTok’s profit-sharing terms have historically been more favourable than competitors like Meta. “I reserve judgement on whether or not we have saved the app for those small businesses,” she said, adding that she has actively campaigned to keep the app accessible to American users.
The new arrangement represents a delicate balancing act: appeasing US lawmakers and regulators while allowing ByteDance to maintain a presence in one of TikTok’s largest and most lucrative markets.
As the January 22 closure date approaches, all eyes will be on the implementation of the joint venture and the algorithm licensing arrangements, which will ultimately determine whether TikTok can operate securely in the US while continuing to thrive as a platform for millions of users and businesses.
Click the link Puretvonline.com | WhatsApp Channel to join the WhatsApp channel
GOT A STORY?
Contact/WhatsApp: +233243201960 or manuelnkansah33@gmail.com
