TikTok has moved closer to securing its future in the United States. The company has signed a deal to sell most of its US business to an American investor-led group. This step comes after years of concern from the US government about data safety and ownership.
TikTok’s parent company, ByteDance, confirmed the agreement on Thursday. The deal includes three major investors: Oracle, Silver Lake, and Abu Dhabi-based MGX. Together, they will create a new company called TikTok USDS Joint Venture LLC. This new firm will manage TikTok’s operations in the United States.
The TikTok sale aims to stop a possible ban of the app in the country. US lawmakers had warned that TikTok could face restrictions unless ByteDance reduced its control. TikTok now has more than 170 million users in the US. A ban could have affected creators, brands, and small businesses that depend on the platform.
Under the agreement, Oracle, Silver Lake, and MGX will each own 15% of the new company. Together, they will control 45%. Existing investors linked to ByteDance will hold about 30.1%. ByteDance itself will keep a 19.9% stake. This structure gives most control to American and global investors.
Oracle will play an important role in the new setup. The company already provides cloud services to TikTok. Under the deal, Oracle will help store and protect US user data. It will also support work on TikTok’s recommendation system for US users. This move aims to reduce worries about data access from outside the country.
TikTok CEO Shou Zi Chew shared the update with employees. He said the agreement allows Americans to keep using the app without disruption. TikTok said the deal helps protect its users while keeping the platform connected to a global community.
The deal is expected to close on January 22. Once completed, it will end years of uncertainty that began in 2020. That year marked the first serious attempt by the US government to limit TikTok due to ownership concerns.
The new US joint venture will operate under closer American oversight. A new board will guide key decisions. These include data protection, content rules, and business plans. Regulators will continue to watch how the company follows these commitments.
TikTok’s sale signifies a tremendous shift for the technological industry. It indicates that the tremendous platforms operating globally might have to modify their activities according to the local regulations. At the same time, the agreement provides clarity to American users.
Also Read: Ireland Investigates TikTok and LinkedIn Over Confusing Illegal Content Reporting Features