US Politics
TikTok deal: ByteDance finalizes agreement to hand off US operations to non-Chinese investors, avoiding ban
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The parent company of TikTok has finalized a deal to divest a majority stake in its U.S. operations to non-Chinese investors, allowing the company to continue to operate in America and finally escape the threat of a looming ban.
Under the deal, tech giant Oracle, Emirati state-backed investment firm MGX, and U.S. investment firm Silver Lake will each possess 15 percent of a new joint venture. Other backers include the investment firm of Dell Technologies founder Michael Dell.
TikTok’s parent company, ByteDance, retains a 19.9 percent stake in the new firm, which is officially called TikTok USDS Joint Venture LLC.
“I am so happy to have helped in saving TikTok!” President Trump wrote on Truth Social. “It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice. Along with other factors, it was responsible for my doing so well with the Youth Vote in the 2024 Presidential Election. I only hope that long into the future I will be remembered by those who use and love TikTok.”
He also thanked President Xi Jinping of China for “approving” the deal.
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“He could have gone the other way, but didn’t, and is appreciated for his decision,” Trump wrote.
As part of the deal, U.S. user data will be protected in Oracle’s secure U.S. cloud environment, TikTok wrote on its website, assuaging domestic concerns over China’s potential influence over the app. The new company will also retrain, test, and update the content recommendation algorithm on U.S. user data.
U.S. users will still be able to interact with global TikTok users, the company said.
In September, President Trump announced a tentative deal between Washington and Beijing had been reached over the fate of TikTok, as the two countries squared off in trade negotiations.
That month, Trump also signed an executive order delaying the enforcement of a previously passed 2024 law threatening a U.S. TikTok ban.
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The order marked the fourth time he extended a looming deadline under the legislation for TikTok to sell its U.S. operations or face a ban.
TikTok agreed to the terms of the deal in December.
The new owners have political ties to Donald Trump.
Billionaire Oracle co-founder Larry Ellison is an ally of the president, and another investor in the new entity, Revolution, previously employed Vice President JD Vance as a managing partner.
During his first term, President Trump signed an executive order supporting a TikTok ban.