TikTok has finalised a $14 billion deal to establish a US-based subsidiary, effectively averting a nationwide ban on the popular video-sharing platform.
Under the new ownership structure, US private equity firm Silver Lake, Abu Dhabi-based artificial intelligence company MGX, and technology giant Oracle will each hold a 15 per cent stake in the US joint venture. TikTok’s Beijing-based parent company, ByteDance, will retain just under a 20 per cent stake, while the Dell Family Office—the investment arm of Dell Technologies chairman and CEO Michael Dell—will also participate in the deal.
The agreement follows legislation passed by the US Congress in April 2024 requiring TikTok to be sold to American owners by January 19, 2025, or face a ban over national security concerns related to its Chinese ownership. Former President Donald Trump delayed enforcement of the ban several times as negotiations progressed and signed an executive order in September approving the deal’s framework, allowing additional time to finalise the transaction.
The deal aligns with an internal memo circulated last month by TikTok CEO Shou Zi Chew, who indicated that negotiations would be concluded by Thursday.
Under the arrangement, TikTok’s US operations will function as an independent entity governed by a seven-member board. The board will include Shou Zi Chew; Oracle Executive Vice President Kenneth Glueck; Timothy Dattels, senior adviser at TPG Global; Mark Dooley, managing director at Susquehanna International Group; Silver Lake co-CEO Egon Durban; DXC Technology CEO Raul Fernandez; and MGX chief strategy and safety officer David Scott.
Adam Presser, TikTok’s head of operations and trust and safety, will serve as chief executive officer of the new US joint venture.
Trump welcomed the development in a post on Truth Social, describing the agreement as a win for American investors and TikTok’s future in the United States. He said Chinese President Xi Jinping had ultimately approved the deal and thanked him for his cooperation.
While Trump has previously characterised the agreement as a “qualified divestiture” that fully removes ByteDance’s control over TikTok, Chinese officials have responded more cautiously, stressing that any deal must comply with Chinese laws and balance the interests of all parties involved.
US lawmakers who raised national security concerns over the platform said they would continue to scrutinise the agreement to ensure it complies with American law, though some indicated they are open to assurances that the deal addresses concerns around surveillance and content manipulation.
Vice President JD Vance said the US entity would have control over TikTok’s algorithm, a key issue during negotiations, noting that algorithmic oversight is central to meeting national security requirements.
TikTok said the US platform will retrain and update its algorithm using American user data, with Oracle hosting and managing the system through its US-based cloud infrastructure.
Despite the assurances, critics remain sceptical. Michael Sobolik, a senior fellow at the Hudson Institute, said the deal still raises questions about China’s influence over the platform, arguing that Beijing may retain significant leverage despite the divestment.
The agreement is expected to keep TikTok operational in the United States while reshaping its governance structure and data controls under increased American oversight.
