ByteDance Finalizes Agreement to Operate TikTok in the US Amid National Security Concerns
ByteDance has signed binding agreements with US and global investors to operate TikTok in the United States, with the deal expected to close on January 22. Under the agreement, ByteDance will retain a 19.9% ownership stake, while Oracle, Silver Lake, and MGX will each hold 15%. Additionally, 30.1% will be held by affiliates of existing ByteDance investors.
This deal marks the end of years of pressure from the US government aimed at forcing ByteDance to divest TikTok over national security concerns. The agreement follows a September deal that came after the Trump administration delayed enforcement of a ban on TikTok.
As part of the deal, Oracle will license TikTok's recommendation algorithm. The algorithm will be retrained exclusively on US user data to prevent external manipulation and to ensure that content feeds are safer for American users. The White House referred comments to TikTok, while Oracle, Silver Lake, and MGX declined to comment.
The agreement will allow over 170 million Americans to continue using TikTok, with party memos framing the deal as an effort to preserve a vital global community. However, Senator Ron Wyden criticized the deal, stating it fails to adequately protect the privacy of American users. Wyden also opposed the 2024 law related to the platform and urged for an extension of the enforcement deadline.
This deal has been widely interpreted as a strategic component in ongoing US-China tensions, involving sign-off from Chinese leader Xi Jinping and considerations linked to trade discussions between the Trump administration and China.
