The US and China have signed off on a deal for TikTok’s Chinese owner to hand over the company’s American division to investors backed by Donald Trump.
It means the US version of TikTok will become majority-owned by a group of investors that includes American tech giant Oracle, California-based private equity fund Silver Lake, and United Arab Emirates investment firm MGX.
The deal will ensure the video platform can continue operating in the US and comes just ahead of a takeover deadline set by the Trump administration that was extended several times.
Oracle is one of the US firms believed to be involved. Pic: Reuters
In a December memo, TikTok said ByteDance – the social media app’s Chinese owner – will retain a 19.9% stake in US operations.
Reuters reports that Silver Lake, Oracle and MGX will each be managing investors with 15% stake each, with Adam Presser serving as the joint venture’s chief.
The decision will end years of uncertainty over the app’s future in the States, after Joe Biden signed a law in 2024 that required TikTok’s Chinese owners to sell up – or else it would be blocked.
The law was introduced amid concerns from some US politicians that ByteDance might share user data with the Chinese government, despite repeated assurances from the firm that it would not.
Critics also expressed fears that Chinese authorities may be able to manipulate TikTok’s algorithms and shape what content users see and are influenced by.
This claim was also denied.
ByteDance denies it shares user data with the Chinese government. Pic: Reuters
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Despite those concerns, Americans make up TikTok’s largest user and creator bases, with more than 150 million active users in the country.
In 2024, Trump voiced his opposition to a ban on the platform, despite having signed an executive order during his first term which would effectively ban the app.
The deal comes as multiple countries around the world – including the UK – are considering a potential Australian-style ban on social media use for under-16s.
