TikTok Strikes US Investment Deal
TikTok’s Chinese owner, ByteDance, signed binding agreements with American and global investors to continue operating in the US. Chief executive Shou Zi Chew informed employees of the deal on Thursday.
The joint venture will be half-owned by investors including Oracle, Silver Lake, and Abu Dhabi-based MGX. According to Chew’s memo, the deal is expected to close on January 22. This agreement ends years of US pressure that sought to force ByteDance to sell its American operations over national security concerns.
TikTok Ownership and Algorithm Licensing Explained
Under the agreement, ByteDance keeps 19.9% of the business. Oracle, Silver Lake, and MGX will hold 15% each, while another 30.1% goes to affiliates of existing ByteDance investors.
Furthermore, the White House confirmed that Oracle, co-founded by Trump supporter Larry Ellison, will license TikTok’s recommendation algorithm as part of the deal.
TikTok Ban Delays and Legal Background
The deal followed multiple delays. In April 2024, Congress passed a law banning TikTok unless ByteDance sold the platform, citing national security concerns. Trump extended the deadline while negotiating the ownership transfer.
Expert and Lawmaker Reactions to TikTok Deal
Alvin Graylin, an MIT lecturer, described TikTok as “a bargaining chip in the wider US-China relationship.” He explained that Beijing’s approval of the structure and algorithm licensing demonstrates a calibrated de-escalation, allowing both countries to claim a win.
TikTok Small Business Users Express Concerns
Some users also voiced caution. Small business owner Tiffany Cianci, who has 300,000 followers and nearly four million likes, hopes the new investors will preserve the user experience for entrepreneurs.
