Popular short-video platform TikTok has reached a landmark agreement to sell its US business to a consortium of American and international investors, marking a major shift in the company’s ownership structure. The new venture will be controlled by Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment company MGX.
The deal is expected to be formally completed on January 22 and is widely seen as the culmination of years of pressure from US lawmakers and regulators, who have repeatedly raised concerns about TikTok’s Chinese ownership and potential National Security risks.
According to an internal memo from TikTok CEO Shou Zi Chew, ByteDance and TikTok have already signed legally binding agreements with the three investors, clearing the way for the transfer of ownership and operational control of TikTok’s US unit.
New Ownership Structure of TikTok US
Under the proposed structure, the newly created TikTok US entity will be majority-owned by American-controlled investors. The move sharply reduces the influence of ByteDance, TikTok’s china-based parent company, addressing Washington’s long-standing concerns.
| Stakeholder | Ownership Percentage |
|---|---|
| Oracle | 15% |
| Silver Lake | 15% |
| MGX (Abu Dhabi) | 15% |
| ByteDance | 19.9% |
| Affiliates of Existing Investors | 30.1% |
As per the agreement, new investors will collectively control 50% of the company, with Oracle, Silver Lake, and MGX each holding equal stakes. ByteDance’s ownership will fall below 20%, a key threshold long demanded by US policymakers.
End of a Long National Security Standoff
The transaction effectively brings to a close a multi-year saga in which US officials warned that TikTok’s Chinese ownership could expose American user data to foreign influence or government access.
Several earlier attempts to sell or restructure TikTok’s US operations had stalled amid geopolitical tensions between Washington and Beijing. The new deal appears to strike a compromise by placing operational control firmly in American hands while allowing ByteDance to retain a minority financial interest.
TikTok’s Massive Influence in the United States
TikTok’s importance in the US digital ecosystem has continued to grow despite political uncertainty. According to a Pew Research Center study, the platform has more than 170 million users in the United States alone.
The same study found that 43% of American adults under the age of 30 regularly consume news on TikTok—surpassing platforms such as YouTube, Facebook, and Instagram. This level of influence has made TikTok a focal point of regulatory and political scrutiny.
With this new ownership arrangement, TikTok aims to secure its future in the US market while easing national security concerns, allowing the platform to continue operating and expanding without the threat of bans or forced shutdowns.
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