TikTok Signs Deal to Spin off US Operations, Putting App a Step Closer to Staying Stateside

With input from CNN, Reuters, BBC, and Bloomberg.

TikTok has officially signed a long-awaited deal to spin off its US business into a new company backed largely by American investors, a move aimed at keeping the hugely popular app alive in the United States.

CEO Shou Chew shared the news with employees in a memo Thursday, confirming that TikTok and its Chinese parent company, ByteDance, have agreed to form a new US-based joint venture. While the transaction isn’t final yet, it marks the biggest step so far toward resolving years of political and legal uncertainty surrounding the app.

“We have signed agreements with investors regarding a new TikTok US joint venture,” Chew wrote. “This will allow more than 170 million Americans to keep using TikTok as part of a vibrant global community.”

The memo, first reported by Axios and later confirmed by CNN, comes after a US law passed last year ordered TikTok to separate from ByteDance or face a nationwide ban. President Donald Trump repeatedly delayed enforcement of that law while pushing for a deal that would put TikTok’s US operations in American hands.

Under the agreement, TikTok’s US app will be run by a new joint venture that’s majority-owned by non-Chinese investors. According to Chew’s memo:

• 50% will be owned by a consortium led by Oracle, private equity firm Silver Lake and Abu Dhabi-based investment firm MGX;
• Just over 30% will go to affiliates of existing ByteDance investors;
• 19.9% will remain with ByteDance.

The companies are aiming to close the deal by Jan. 22, 2026, though Chew said there’s still work to be done. The deal will also need approval from Chinese authorities and regulators in both countries.

As part of the arrangement, TikTok’s recommendation algorithm will be retrained using US user data, and Oracle will oversee storage of Americans’ data. The new US entity will also take charge of content moderation for American users. ByteDance, however, is expected to continue handling global operations like advertising, marketing and e-commerce.

The Trump administration has said the deal meets the legal requirement for divestment and delayed enforcement of the ban to give the companies time to finalize it. Trump has claimed Chinese President Xi Jinping supports the agreement, though Beijing hasn’t publicly confirmed that.

China’s foreign ministry declined to comment on specifics Friday, saying only that its position on TikTok remains “consistent and clear.”

Some US lawmakers remain skeptical. Sen. Ron Wyden, D-Ore., said the deal does little to protect Americans’ privacy, while others have questioned whether ByteDance still retains too much influence over the app’s core technology.

For TikTok creators and small businesses, the news brings cautious optimism. The platform says more than 7 million US small businesses rely on TikTok for marketing, and many users are hoping the ownership shakeup won’t change the app’s look, feel or earning potential.

For now, TikTok’s future in the US looks more stable than it has in years — but until the deal is finalized and fully approved, the story isn’t over yet.