Technology and Science19 December, 20252 min read
TikTok Signs Joint Venture With U.S. Investors to Avert Ban Over Chinese Ownership
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
TikTok signed agreement to spin off U.S. operations into a new joint-venture entity Consortium of mostly American investors, including Oracle and Silver Lake, will control the U.S. entity
6 outlets told this the same way.
TikTok US joint venture
TikTok and its Chinese parent ByteDance have agreed on the structure of a new joint venture, according to company communications and multiple reports, intended to keep the app operating in the United States and avert a possible ban tied to its Chinese ownership. CEO Shou Zi Chew told employees in an internal memo that the firm and ByteDance have reached the deal, and named major investors including Oracle, Silver Lake and Abu Dhabi-based MGX. Reports note the app has more than 170 million U.S. users, and the move resolves a prolonged U.S. dispute while addressing a 2024 U.S. law that would otherwise force divestment or a ban.
“TikTok and its Chinese parent ByteDance have agreed on the structure of a new joint-venture that will allow the app to keep operating in the United States and avert a possible ban tied to its Chinese ownership. CEO Shou Chew told employees in an internal memo (obtained by AFP) that the firm and ByteDance have reached the deal; major investors in the venture include Oracle, Silver Lake and Abu Dhabi-based MGX. The move resolves a prolonged U.S. dispute over the app, which has more than 170 million U.S. users.”
U.S. venture ownership plan
Under the proposed structure, a consortium of new investors would hold roughly half of the U.S. venture while ByteDance would retain a minority stake capped by law. Multiple reports say Oracle, Silver Lake and Abu Dhabi's MGX would each take about 15% of the new U.S. entity. Affiliates of existing ByteDance investors are reported to take just over 30%, while ByteDance would keep just under the 20% legal cap, often reported as 19.9%.
The new U.S. entity is described as responsible for U.S. data protection, algorithm security, content moderation and software assurance. It would have exclusive authority to assure security for American users' content, software and data.
ByteDance deal timeline
Reports diverge on timing and regulatory steps.
“TikTok has signed a deal expected to close Jan. 22 to restructure its U.S. operations.”
Some accounts state the deal must close by Jan. 22, with Business Matters and The Hindu noting Jan. 22 as the target.
RBC-Ukraine explicitly cites an expected closing date of January 22, 2026 and emphasizes that the plan still needs regulatory approvals in both the U.S. and China, including Chinese sign-off.
Coverage also consistently links the move to U.S. legislation requiring ByteDance to divest or face a ban, and to earlier frameworks and White House comments that signaled similar arrangements.
Investor and political context
Political context and investor profiles appear across reports with different emphases. The Hindu highlights Oracle's Larry Ellison as a key investor and notes U.S. lawmakers' long-running national-security concerns about Chinese access to data and algorithmic influence.
RBC-Ukraine and The Hindu report that Beijing had not immediately confirmed approval and that the Chinese foreign ministry reiterated a consistent position. Business Matters notes the White House's statement about Oracle licensing the recommendation algorithm and flags continuing skepticism among some lawmakers and experts that the arrangement fully resolves privacy and influence risks.
Security and regulatory concerns
Despite the agreement's headline resolution of immediate operational uncertainty for American users and businesses, sources uniformly record reservations. Chinese analysts and officials warn of remaining regulatory risks.
“The deal eases immediate uncertainty for U.S. users and businesses (TikTok says more than 7 million U.S. small businesses use the app), but some lawmakers and experts remain skeptical that the agreement fully resolves privacy and influence risks; its ultimate acceptance will depend on how the joint venture operates.”
Business Matters and RBC-Ukraine report that some lawmakers and experts remain skeptical the deal fully addresses privacy or foreign-influence dangers. Reports note that multiple approvals and technical safeguards, such as retraining algorithms and U.S. data storage oversight, still must be implemented and verified before practical security outcomes are assured.
