The deal to transfer control of TikTok’s US operations is making significant progress, as confirmed by CEO Shou Chew. In a recent communication to employees, Chew stated that ByteDance and TikTok had formally agreed on the terms for the US business, nearly three months after Donald Trump signed an executive order aimed at facilitating such a deal. This development indicates that the arrangement aligns closely with the original framework proposed by Trump.
The agreement entails a consortium of US investors, including Oracle, Silver Lake, and MGX, who will collectively hold a majority stake in the newly structured entity. ByteDance is expected to retain a smaller ownership percentage. According to Chew’s memo, the deal is scheduled to be finalized by January 22, 2026.
Details of the Agreement
Upon completion of the deal, the joint venture will operate as an independent entity, with a focus on vital aspects such as US data protection, algorithm security, content moderation, and software assurance. Chew emphasized that the new structure would build upon the existing framework of the US Data Security (USDS) organization.
Despite this progress, questions remain regarding the position of Chinese officials on the agreement. Trump had previously stated that China was “fully on board” with the transaction, yet subsequent discussions have yielded ambiguous responses. In October, China’s Commerce Ministry indicated a willingness to “work with the U.S. to properly resolve issues related to TikTok.”
This potential agreement marks a significant moment in the ongoing saga surrounding TikTok, particularly as it comes nearly one year after Trump’s first executive order aimed at delaying a mandate for either a sale or a ban of the app in the United States. Since then, Trump has issued several extensions to allow negotiations to continue.
As the situation evolves, the implications of this deal could have a lasting impact on TikTok’s operations in the US, as well as on its relationship with both Chinese and American authorities. The business community continues to monitor these developments closely, as they could set a precedent for future international tech transactions.
TikTok has not provided an immediate comment regarding the current status of the agreement or any ongoing discussions with Chinese officials.
