TikTok signed a major agreement on Thursday to sell its US business to three American investors. The buyers are Oracle, Silver Lake, and Abu Dhabi-based MGX. The deal ensures that the video-sharing app will continue operating in the United States.

An internal memo reviewed by The Associated Press said the transaction is expected to close on January 22. This marks a key turning point in TikTok’s long and controversial battle to stay in the US market.

Binding Agreements Finalised

In the memo, TikTok chief executive officer Shou Zi Chew confirmed that TikTok and its parent company ByteDance had signed binding agreements with the three investors. The deal creates a new TikTok US joint venture with a complex ownership structure.

A consortium of new investors will hold 50 per cent of the venture. Oracle, Silver Lake, and MGX will each own 15 per cent. The remaining five per cent will come from other investors in the group.

ByteDance Retains Minority Stake

Affiliates of existing ByteDance investors will control another 30 per cent of the new company. ByteDance itself will retain a 19 per cent stake, according to the memo.

Despite reducing its ownership, ByteDance will continue to play a role in the company. However, control of operations and oversight will largely shift to US-based entities.

Oracle’s Role in Data and Algorithms

White House officials said Oracle will play a central role under the agreement. The company will license a copy of TikTok’s recommendation algorithm as part of the deal.

This arrangement builds on Oracle’s existing responsibility for managing TikTok’s large collection of data from US users. The move aims to address long-standing concerns in Washington about data security and Chinese influence.

Oracle was co-founded by Larry Ellison, a close ally of former US President Donald Trump. His involvement has drawn significant attention.

Concerns Over Media Control

The deal has sparked debate about growing control of major media and technology platforms by pro-Trump billionaires. Critics point to Ellison’s expanding influence as a key concern.

Ellison’s son, David, is now pushing major changes at CBS. Elon Musk controls X, formerly known as Twitter. Mark Zuckerberg oversees Facebook and Instagram. Jeff Bezos owns the Washington Post. Observers say this trend raises questions about media independence and influence.

Long Road to Agreement

The agreement comes after months of delays and negotiations. In September, Trump said he spoke directly with Chinese President Xi Jinping about the deal.

Trump said he had “a very good talk with President Xi” and added that “he gave us the go-ahead”.

In October, US Treasury Secretary Scott Bessent announced that the US and China “reached a final deal on TikTok”.

From Threatened Ban to Final Deal

The deal marks a sharp shift from earlier years. During his first term in office in 2020, Trump threatened to ban TikTok. He linked the threat to China’s handling of the COVID pandemic.

In 2024, the US Congress passed a law banning TikTok over national security concerns. Former US President Joe Biden signed the legislation into law. The ban was scheduled to take effect on January 20, 2025.

However, the ban was delayed several times. Trump postponed its implementation while his administration worked to finalise a plan to transfer ownership and keep the app running in the US.