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TikTok US Deal Closer to Reality, ByteDance Agrees
19 Dec, 2025
Summary
- TikTok and ByteDance have agreed to terms for US business control.
- US investors will hold a majority stake in the new independent entity.
- The deal is projected to finalize by January 22, 2026.
The agreement to spin off TikTok's US business is nearing official status, with TikTok CEO Shou Chew informing employees that a deal has been signed by TikTok and ByteDance. This accord, largely mirroring terms announced previously, designates a group of US investors, including Oracle and Silver Lake, to control a majority stake in the new independent US entity. ByteDance will retain a smaller share in this venture.
This newly formed US joint venture is slated to operate independently, with complete authority over US data protection, algorithm security, content moderation, and software assurance. The anticipated closing date for this transaction is January 22, 2026. The deal's progress comes nearly a year after President Trump's initial executive order, which aimed to compel a sale or ban of the app, followed by several subsequent extensions.
While the agreement appears to be moving forward, the stance of Chinese officials remains unclear. Despite President Trump's earlier assertion that China was "fully on board," recent discussions have yielded only vague statements. China's Commerce Ministry indicated in October a willingness to "work with the U.S. to properly resolve issues related to TikTok," suggesting ongoing negotiations.
