ByteDance Exposes Path to US Business Survival

By John Pranay (Editor)

TikTok's Chinese owner ByteDance has signed binding agreements with US and global investors to operate its business in America, avoiding a potential ban. The deal, set to close on January 22, will see a joint venture formed with Oracle, Silver Lake, and Abu Dhabi-based MGX holding a 45% stake. ByteDance will retain 19.9% of the business, while a consortium of new investors will hold 50%. The agreement aims to address national security concerns over data privacy.

The agreement was announced by TikTok CEO Shou Zi Chew in a memo to employees on Thursday. Chew stated that the deal will enable "over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community." The platform has been at the center of a years-long battle over national security concerns, with the US government pushing for ByteDance to divest its US operations. The deal marks a significant step towards resolving this uncertainty.

• August 2020: Then-President Donald Trump first tries to ban TikTok in the US.

• April 2024: The US Congress passes a law to ban TikTok over national security concerns, unless it is sold.

• September 2024: Trump delays the enforcement of the law, citing a deal to transfer ownership.

• October 2024: Trump meets with China's President Xi Jinping, but the platform's future remains uncertain.

• December 18, 2025: TikTok CEO Shou Zi Chew announces the signing of binding agreements with US and global investors to operate its business in America.

• January 22, 2026: The deal is set to close, forming a new TikTok US joint venture.

The deal has significant implications for users and small businesses on the platform. TikTok has stated that over seven million small businesses market their products and services on the platform in the US. Small business owner Tiffany Cianci, who has more than 300,000 followers and nearly four million likes on the platform, hopes that the incoming investors will maintain the same user experience for entrepreneurs like her. The deal also raises concerns over data privacy, with some users expressing caution at the prospect of new investors.

The deal marks a significant shift in the US-China relationship, with both countries claiming a win. The agreement addresses national security concerns over data privacy, but some critics argue that it may not be enough to protect user data. The deal also highlights the growing importance of social media platforms in global politics, with TikTok becoming a bargaining chip in the wider US-China relationship. The agreement will enable over 170 million Americans to continue using the platform, but

This deal suggests that the US and China are engaging in a calibrated de-escalation of tensions, with both sides seeking to claim a win. The agreement addresses national security concerns over data privacy, but it also raises questions over the long-term implications for users and small businesses on the platform. Crucially, this overlooks the potential for new investors to compromise user data, highlighting the need for continued scrutiny of social media platforms. As the deal closes on January 22,

Assessment: Bullish.

1. TikTok owner signs agreements to avoid US ban — https://www.bbc.co.uk/news/articles/cgexp1q8wn1o.amp

2. Tiktok signs deal to sell US business to American investors — https://www.palmbeachpost.com/story/money/2025/12/18/tiktok-signs-deal-to-sell-us-business-to-american-investors/87835211007/

3. TikTok owner signs new joint venture deal with US to avoid ban — https://www.thenews.com.pk/latest/1385390-tiktok-owner-signs-new-joint-venture-deal-with-us-to-avoid-ban

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.