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TikTok owner signs deal to avoid US ban

December 19, 2025

ByteDance has finalized binding agreements to restructure TikTok's US operations through a joint venture that will transfer majority control to American and global investors, including Oracle, Silver Lake, and UAE-based MGX. The arrangement, scheduled to close on January 22nd, allows ByteDance to retain only 19. 9% ownership while the investor group collectively holds the majority stake, with Oracle licensing TikTok's recommendation algorithm.

Who is affected

  • Over 170 million American TikTok users
  • ByteDance (Chinese parent company)
  • Oracle, Silver Lake, and MGX (incoming investors)
  • Existing ByteDance investors and their affiliates
  • More than seven million US small businesses that market on TikTok
  • Small business owners like Tiffany Cianci with significant platform followings
  • US and Chinese governments
  • Senator Ron Wyden and other US lawmakers

What action is being taken

  • ByteDance is signing binding agreements with US and global investors
  • Oracle is licensing TikTok's recommendation algorithm
  • TikTok's recommendation algorithm is being retrained on American user data to ensure feeds are free from outside manipulation

Why it matters

  • This deal resolves a multi-year standoff over national security concerns between the US government and ByteDance, preventing a ban that would have affected 170 million American users and over seven million small businesses that rely on TikTok for marketing. The agreement represents a significant development in US-China relations, serving as what experts describe as "calibrated de-escalation" where both nations can claim victory domestically. However, the deal's significance is complicated by ongoing concerns from lawmakers about user privacy protection and uncertainty from small business owners about whether the platform's entrepreneur-friendly features will be preserved under new ownership.

What's next

  • The deal is set to close on January 22nd
  • TikTok's recommendation algorithm will be retrained on American user data

Read full article from source: BBC