ByteDance, the Chinese parent company of TikTok, has entered into binding agreements to transfer around 80% ownership of the video-sharing platform’s U.S. assets to a consortium of American and international investors, according to an internal memo from TikTok CEO Shou Zi Chew to employees on Thursday.
The agreement marks a significant move toward clarifying the future of TikTok in the United States, following years of regulatory and political scrutiny that began in August 2020. At that time, then-President Donald Trump initiated an unsuccessful attempt to ban the app, which is now used by more than 170 million Americans.
According to the company memo, ByteDance and TikTok have signed definitive agreements with Oracle, Silver Lake, and MGX, who will form a new U.S.-based joint venture, dubbed TikTok USDS Joint Venture LLC. The structure will see the new investor consortium—composed of Oracle, Silver Lake, and MGX—hold a collective 50% stake, with each receiving approximately 15%. Affiliates of certain current ByteDance investors will take just over 30%, while ByteDance itself will maintain almost 20% ownership, the memo detailed.
The transaction is anticipated to conclude on January 22. TikTok stated that this arrangement would ensure that more than 170 million U.S. users will continue enjoying access to the platform and its wide array of content, describing the outcome as preserving “a vital global community.”
Former President Trump, who is now serving once again as president of the United States, initially announced a preliminary deal to divest TikTok’s U.S. operations in September. This led to the postponement of the platform’s potential ban until January 20, 2026, according to statements made at the time.
