Highlights
- ByteDance retains 19.9 per cent stake while Oracle, Silver Lake and MGX each hold 15 per cent in new joint venture.
- Deal averts ban deadline extended multiple times by Trump administration.
- Platform's 150 million American users can continue accessing service.
The US and China have finalised an agreement for TikTok's Chinese owner ByteDance to transfer majority control of its American operations to investors backed by Donald Trump, ending years of uncertainty over the platform's future.
Under the deal, US tech giant Oracle, California-based private equity firm Silver Lake, and United Arab Emirates investment company MGX will each manage 15 per cent stakes in the new joint venture, with Adam Presser serving as chief.
ByteDance will retain a 19.9 per cent minority stake in US operations, according to a December memo from TikTok.
Writing on Truth Social following the announcement, Trump declared "So happy to have helped in saving TikTok!"
He thanked China's Xi Jinping for not blocking the agreement and later told reporters aboard Air Force One he would visit China in April, with Xi expected to visit the US later this year.
The deal arrives just ahead of a takeover deadline set by the Trump administration after multiple extensions.
It resolves concerns that prompted Joe Biden to sign legislation in 2024 requiring ByteDance to divest its American operations or face a nationwide ban.
Security concerns persist
US politicians had expressed concerns ByteDance might share user data with the Chinese government, despite repeated denials from the firm.
Critics also feared Chinese authorities could manipulate TikTok's algorithms to influence content users see, claims ByteDance consistently rejected.
Americans represent TikTok's largest user base, with over 150 million active accounts. Trump reversed his first-term position opposing the platform, having previously signed an executive order effectively banning the app.
The agreement comes as multiple countries, including the UK, consider Australian-style restrictions on social media access for under-16s, reflecting global concerns about platform regulation and youth protection.
