ByteDance Finalizes Agreements to Operate TikTok's U.S. Business Amid Ongoing U.S.-China Tensions
ByteDance has signed binding agreements with U.S. and global investors to operate TikTok's U.S. business, with the closing set for 22 January. Under the deal, ByteDance will retain a 19.9% stake in the business, while Oracle, Silver Lake, and MGX will each hold 15%. Affiliates of existing ByteDance investors will hold 30.1%. As part of the agreement, Oracle will license TikTok's recommendation algorithm.
This agreement marks an end to years of U.S. pressure aiming to force ByteDance to sell TikTok's U.S. operations. The arrangement follows a regulatory framework established in September after former President Trump delayed enforcement of a potential ban. According to a memo, the deal is intended to allow over 170 million Americans to continue using TikTok as part of a global community.
The White House referred inquiries regarding the deal to TikTok, while Oracle and Silver Lake declined to comment. MGX had not immediately provided a comment. Senator Ron Wyden, who opposed the 2024 law relating to the platform's operations, criticized the deal, stating that it does not sufficiently protect American user privacy. Analysts have described the deal as a calibrated de-escalation in the U.S.-China relationship, noting Beijing's approval of the ownership structure and the licensing of the algorithm.
