Brace yourselves, TikTok fans -- a blockbuster deal might just save your favorite app from a US ban, keeping those viral dances alive for millions.
ByteDance, the Chinese parent of TikTok, has finalized binding agreements to sell over 80% of TikTok’s American assets to a trio of investors, hoping to sidestep a government shutdown over national security fears, as the New York Post reports.
This saga began back in August 2020, when then-President Donald Trump first pushed to ban the app, sparking a long-running battle over its future in the States.
Now, ByteDance has teamed up with Oracle, Silver Lake, and Abu Dhabi-based MGX to create a new entity dubbed TikTok USDS Joint Venture LLC.
The ownership split of this venture sees Oracle, Silver Lake, and MGX each taking 15% for a combined 45%, while ByteDance holds onto 19.9%, and the remainder goes to affiliates of existing ByteDance investors.
Set to close on January 22, this deal builds on terms floated in September when Trump delayed a ban enforcement to January 20, contingent on a sale meeting US divestiture rules.
Trump confirmed the arrangement aligns with government demands, addressing years of concern that TikTok’s Chinese ties could jeopardize American user data.
While the White House has deflected questions to TikTok and Oracle stayed silent, the deal’s implications are massive for the app’s future here.
TikTok itself spun the news positively, stating it will allow “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
That’s a charming sentiment, but let’s not ignore the elephant in the room -- ByteDance retaining nearly 20% ownership hardly feels like a clean break from potential foreign influence.
On Thursday, TikTok CEO Shou Zi Chew shared the update with staff, likely aiming to ease tensions after a rollercoaster of uncertainty for the company’s U.S. operations.
For over 170 million American users, this could mean stability, but conservatives might question if partial divestiture truly shields against data privacy risks.
This joint venture may end a drawn-out clash, but ByteDance’s lingering stake could still fuel skepticism among those wary of Big Tech and overseas control.
Still, the deal offers a pragmatic step forward, tackling at least some national security worries while preserving an app that’s become a cultural staple for millions.
Whether this compromise satisfies critics or just delays deeper scrutiny remains to be seen, but for now, TikTok’s American heartbeat keeps ticking.
