TikTok owner reaches agreement to prevent US ban

TikTok’s Chinese parent ByteDance has signed binding agreements with US and global investors to continue operating the app in the United States, CEO Shou Zi Chew told employees in a memo on Thursday.

Under the deal, which is set to close on 22 January, a new joint venture will be formed in which ByteDance will retain a 19.9% stake. A consortium including Oracle, Silver Lake and Abu Dhabi-based MGX will each hold 15%, while affiliates of existing ByteDance investors will own the remaining 30.1%.

The agreement is expected to end years of US pressure to force a sale of TikTok’s American operations over national security concerns. It follows a framework announced in September, after President Donald Trump delayed enforcement of a law that would have banned the app unless it was sold.

As part of the deal, Oracle is expected to license TikTok’s recommendation algorithm, which will be retrained using US user data. While TikTok said the agreement would allow its 170 million American users to continue using the platform, critics argued it may not adequately protect user privacy.

The deal has also drawn mixed reactions from lawmakers and creators, with some small business owners cautiously hopeful that the platform’s existing user experience and revenue opportunities will be preserved.