US and China Sign Deal for TikTok’s American Division

The US and China have signed a deal for TikTok’s Chinese owner to hand over the company’s American division to investors backed by the US government. This deal ensures the video platform can continue to operate in the US and comes close to a takeover deadline set by the US government.

Ownership Structure

The US version of TikTok will be majority owned by a group of investors including American technology giant Oracle, California-based private equity fund Silver Lake, and United Arab Emirates investment firm MGX. ByteDance, the Chinese owner of the social media app, will retain a 19.9% stake in its US operations. Silver Lake, Oracle, and MGX will manage the investors with a 15% stake each.

Background

The decision ends years of uncertainty over the app’s future in the US after a law was introduced requiring TikTok’s Chinese owners to sell it, otherwise it would be blocked. The law was introduced amid fears by some US politicians that ByteDance could hand over user data to the Chinese government, despite the company’s repeated assurances that this would not be the case. Critics also expressed fears that Chinese authorities could manipulate TikTok’s algorithms and influence what content users see and are influenced by.

User Base and Future Plans

Despite these concerns, Americans make up TikTok’s largest user and creator base, with more than 150 million active users in the country. The president has expressed opposition to banning the platform and has announced plans to visit China in April, with the Chinese President set to travel to the US toward the end of 2026. The TikTok deal comes as several countries around the world are considering a possible ban on social media use for under-16s.