TikTok’s Chinese owner, ByteDance, has reached binding agreements with US and global investors to sell a majority stake in its American business, the company announced Thursday.
TikTok Ownership Deal Reached
The deal will see a group of investors, including Oracle, Silver Lake, and the Emirati investment firm MGX, collectively own half of the joint venture. ByteDance will retain a 19.9% stake, while Oracle, Silver Lake, and Abu Dhabi-based MGX will each hold 15%.
An additional 30.1% will be held by affiliates of existing ByteDance investors, according to a memo sent by chief executive Shou Zi Chew to employees.
The agreement is expected to close on January 22 and aims to resolve years of US national security concerns regarding the app. The deal mirrors one initially unveiled in September, following a delay in enforcement of a law that could have banned TikTok unless it was sold.
TikTok stated the deal will allow “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
The White House referred inquiries to TikTok. Oracle, which will license TikTok’s recommendation algorithm as part of the deal, declined to comment.
The agreement follows a law passed by the US Congress in April 2024, which threatened to ban the app unless ByteDance divested. That law was slated to take effect on January 20, 2025, but was repeatedly delayed as the Trump administration worked to negotiate a transfer of ownership. Former President Trump stated in September that he had discussed the deal with Chinese President Xi Jinping, who reportedly approved it.
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