TikTok has finally hit a huge turning point in its never-ending fight to stay alive in the United States. The company just announced a massive joint venture deal that might actually put an end to the threat of a nationwide ban over its Chinese ownership.
TikTok’s US Survival Plan Takes Shape
According to an internal memo that AFP got its hands on, TikTok CEO Shou Chew told his team that they and parent company ByteDance have struck a deal to create a new US-based company. This new joint venture is backed by a group of heavy-hitting investors. Oracle, Silver Lake, and the Abu Dhabi-based MGX are the main players, and each will grab a 15 percent stake. Existing ByteDance investors will take a little over 30 percent, leaving ByteDance with just under 20 percent – which is exactly the limit US law allows for a Chinese firm.
This whole setup is built to satisfy that 2024 law that basically told ByteDance: sell the US operations or get banned. That ultimatum came from deep worries in Washington that China could use the app to spy on Americans or twist public opinion using the algorithm.
Under this new deal, the US joint venture takes full control of the important stuff: data protection, algorithm security, content moderation, and making sure the software is safe for American users. Chew made it clear that this new entity has the sole power to keep US user data locked down. Oracle, run by Larry Ellison – who is known to be close with Donald Trump – is expected to handle the tech infrastructure and keep a close eye on things.
Good news! Tiktok is not going back
For users, this means the app probably isn’t going anywhere. For creators and businesses, it finally kills the uncertainty that has been hanging over their heads for years, threatening their income and marketing plans.
Politically, it’s a classic compromise. It gives the US the control it wanted without forcing ByteDance into a total sale, which Beijing was never going to let happen anyway. Trump has been pushing back the ban deadline for a while now, most recently to January, and this deal looks a lot like the framework the White House teased back in September.
It’s not a done deal yet, though. Chew admitted there is still work to do before the target closing date of January 22, and the Chinese government still needs to sign off on it. Analysts also warn that the scrutiny won’t just vanish. US regulators could still slap new rules on TikTok, and questions about how the algorithm works aren’t going away.
Still, experts see this as a huge win for ByteDance. Keeping a foothold in the US saves them from a financial disaster and lets them pivot back to focusing on AI and maybe even an IPO down the road. For now, TikTok’s future in America looks safer than it has in a long time – even if the arguments about it aren’t totally over.