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By Gabe Whisnant
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TikTok has agreed to sell its U.S. business to a group of American investors, including Oracle, Silver Lake and MGX, a move that would allow the popular social video app to continue operating in the United States.
The White House in response to a request for comment referred to TikTok corporate for all queries. Newsweek reached out to TikTok by email on Thursday evening.
Why It Matters
The U.S. has finally come through a long and tortured process to determine the fate of TikTok's stateside operations: President Donald Trump during his first administration proposed banning the app outright due to national security concerns, going so far as to sign an executive order telling the app's parent company, Beijing-based ByteDance, to divest its U.S. operations or face a ban.
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The administration of former President Joe Biden reversed the order, but then in 2024, lawmakers and federal agencies revived calls for a ban, again citing national security concerns, leading to the Protecting Americans from Foreign Adversary Controlled Applications (PAFACA) Act. Biden signed it into law, setting a deadline for TikTok to divest from ByteDance.
But Trump, upon returning to office, credited TikTok with helping him win the 2024 election, and he decided to extend TikTok's deadline to divest, even though the app briefly shut down, voluntarily, just days before Trump's second administration began. The app has since continued to function while Trump has sought a buyer, with Oracle, run by his friend Larry Ellison, the long-believed front-runner.
Much of the back-and-forth over the app has focused on its algorithm, which China previously maintained must remain under Chinese control by law, and the PAFACA Act necessitated the divestiture to include the algorithm.
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What To Know
The Associated Press (AP) on Thursday reported that TikTok will sign a deal with the three American investors after reviewing an internal memo that also said the transaction is expected to close January 22.
TikTok CEO Shou Zi Chew said in the memo that TikTok and its China-based parent company, ByteDance, have signed binding agreements with the three investors.
Under the agreement, a new TikTok U.S. joint venture will be majority-owned by a consortium of new investors, which will hold a combined 50 percent stake, with Oracle, Silver Lake and MGX each owning 15 percent. Affiliates of existing ByteDance investors will hold about 30.1 percent, while ByteDance will retain a 19.9 percent stake, the memo said.
For U.S. users, the change is not expected to bring immediate disruptions, with the company signaling that the app will continue operating as usual. The new ownership structure could ease regulatory pressure that has threatened a potential ban, providing greater stability and continuity for creators, advertisers and businesses relying on the platform.
Any longer-term changes, like adjustments to data handling, content moderation or product features, would likely be rolled out gradually, as the app works to meet U.S. security and compliance requirements.
What People Are Saying
Trump, in September in the Oval Office: "I had a very good talk with President Xi, I have a lot of respect for him ... We talked about TikTok, and he gave us the go-ahead. It's run by American investors, American companies. Great ones, great investors."
AP contributed information for this report.
Update 12/18/25, 7:17 p.m. ET: This article has been updated with additional information.
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