In brief
ByteDance, the Chinese owner of TikTok, has reached binding agreements with US and global investors, including Oracle and Silver Lake, allowing TikTok to continue its operations in the US. This deal, which is expected to close on January 22, 2025, will see TikTok’s ownership structure change to alleviate national security concerns raised by the US government. While many users express hope for the future, concerns about data privacy and site manipulation persist, with critics of the deal questioning its long-term implications.
TikTok's Chinese owner ByteDance has signed binding agreements with US and global investors to operate its business in America, TikTok's boss told employees on Thursday.
Half of the joint venture will be owned by a group of investors, including Oracle, Silver Lake and the Emirati investment firm MGX, according to a memo sent by chief executive Shou Zi Chew.
The deal, which is set to close on 22 January, would end years of efforts by Washington to force ByteDance to sell its US operations over national security concerns.
It is in line with a deal unveiled in September, when US President Donald Trump delayed the enforcement of a law that would ban the app unless it was sold.
In the memo, TikTok stated the deal will enable over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.
Under the agreement, ByteDance will retain 19.9% of the business, while Oracle, Silver Lake and Abu Dhabi-based MGX will hold 15% each, with another 30.1% held by affiliates of existing ByteDance investors.
The White House previously indicated that Oracle would license TikTok's recommendation algorithm as part of the agreement, which has drawn critiques from Senate Democrat Ron Wyden of Oregon, who said it wouldn't do a thing to protect the privacy of American users.
Despite assurances from TikTok, concerns remain over the platform's data security and the influence of new investors. Small business users are hopeful the deal will preserve their current user experience, but many await its impact with caution.
