ByteDance, the owner of TikTok, announced on Thursday that it has reached a formal agreement to sell its US business unit to a joint venture dominated by American investment forces.
The deal is expected to be finalized on January 22 of next year, putting an end to years of legal disputes and political pressure related to US national security concerns.
According to an internal memo from TikTok’s CEO, the new entity will be formed by a group of prominent investors, with companies Oracle, Silver Lake, and M.G.X. collectively obtaining a 45% stake.
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This move comes in response to US demands for the Chinese parent company to divest from its activities in the local market. The significance of this shift lies in ending the persistent threats of a ban on the application within the United States.
Control by American Investors
The new joint venture also ensures that operations and data will be under the control of American investors, alleviating concerns related to data privacy.
Despite internal memos and reports, the parent company refrained from providing an immediate official comment to the media.
The deal is scheduled to come into full effect by January 22, 2026, a deadline that will mark the transfer of ownership and management of the platform, which has millions of users in America, to the new entity.
TikTok
TikTok is a social media platform for creating and sharing short-form videos, launched internationally in 2017 by the Chinese company ByteDance after merging with its predecessor, Douyin. It rapidly grew into a global cultural phenomenon, significantly influencing music, trends, and digital communication.
ByteDance
ByteDance is a Chinese multinational internet technology company founded in 2012 by Zhang Yiming, best known for creating the social media platform TikTok. It has grown rapidly to become one of the world’s most valuable private companies, operating a suite of content platforms powered by machine learning and artificial intelligence.
America
The United States of America is a federal republic founded in 1776 after declaring independence from Great Britain. Its history spans from indigenous civilizations and European colonization to becoming a global superpower, shaped by events like westward expansion, the Civil War, and large-scale immigration.
United States
The United States is a federal republic founded in 1776 following its Declaration of Independence from Great Britain. Its history is marked by westward expansion, a civil war over slavery, and its emergence as a global superpower in the 20th century. The nation is defined by its diverse population, democratic institutions, and significant cultural influence worldwide.
Oracle
The Oracle refers most famously to the Oracle of Delphi in ancient Greece, a priestess known as the Pythia who served as a conduit for the god Apollo. People from across the Mediterranean world would travel to the sanctuary to seek prophetic advice on matters of state and personal life, making it a central religious and political institution for centuries.
Silver Lake
Silver Lake is a residential and commercial neighborhood in Los Angeles, California, known for its historic role as a hub for the city’s entertainment and counterculture scenes. Originally developed in the early 20th century around its namesake reservoir, it became famous in the mid-1900s as a center for jazz music and later as a focal point for the city’s LGBT+ community and indie music culture.
M.G.X.
“M.G.X.” refers to the Grand Mosque of Xi’an, one of the oldest and most significant mosques in China. Its construction began in 742 AD during the Tang Dynasty, reflecting the historic presence of Muslim communities along the Silk Road. The mosque’s architecture is a notable blend of traditional Chinese design and Islamic functionality.
