TikTok secures U.S. future through investor deal, retains partial ownership
TikTok’s parent company, ByteDance, has finalized a deal with U.S. and global investors to keep the popular app operating in America, avoiding a threatened ban. Under the agreement, ByteDance will retain a 19.9% stake, while Oracle, Silver Lake, and Abu Dhabi’s MGX will each hold 15%. Existing ByteDance investors will own the remaining 30.1%.
The arrangement, set to close on January 22, follows years of U.S. national security concerns and aligns with a framework endorsed by former President Donald Trump.
Oracle will license TikTok’s recommendation algorithm, which will be retrained on American data to address manipulation fears.
However, the deal faces criticism. Senator Ron Wyden called it inadequate for protecting American privacy, while small business owners on the platform worry about changes under new investors.
The agreement marks a diplomatic compromise amid ongoing U.S.-China tensions, allowing TikTok’s U.S. community of over 170 million users and 7 million small businesses to continue using the app.
