TikTok Finalizes Deal to Sell US Operations

Photo File (X/@sejournal)

TikTok has announced that it has finalized an agreement regarding the sale of its business operations in the United States, effectively removing the long-standing threat of a ban in the country.

The deal was concluded by TikTok’s parent company, ByteDance, under which a new company will be formed with majority ownership held by US-based firms. The move is aimed at addressing national security concerns raised by American lawmakers.

Under the agreement, a consortium of investors including Oracle, Silver Lake, and UAE-based company MGX will collectively hold a 80.1 percent stake in the newly formed company. ByteDance will retain the remaining 19.9 percent ownership.

Following the announcement, the risk of TikTok being banned in the United States has subsided. The platform has faced uncertainty for years, beginning with former President Donald Trump’s warning during his first term that TikTok could be banned over security concerns.

The situation escalated in 2024 when the US House of Representatives passed legislation requiring TikTok’s US operations to be sold to an American company or face a nationwide ban. The US Supreme Court later upheld the law.

However, President Donald Trump delayed enforcement of the ban through executive orders, initially suspending it for three months on the first day of his second term and extending the pause multiple times to allow negotiations to continue.

In a statement, TikTok said its Global Head of Operations and Trust & Safety, Adam Presser, will serve as the chief executive officer of the new company, while TikTok CEO Shou Chew will join its board. The company added that US operations will function under strict frameworks to safeguard American national security data, with the recommendation algorithm retained but updated based on US user data.

A White House official confirmed that both the US and Chinese governments have signed off on the agreement, though no formal statement has yet been issued by Beijing. President Trump, however, thanked his Chinese counterpart in a social media post following the deal’s conclusion.