TikTok signs deal to relinquish control of app in US and avoid ban

TikTok parent company ByteDance signed agreements with predominantly American investors this would allow it to continue operating in the United States to avoid the ban due to its Chinese ownership, as reported in a press release.

The agreement represents an important step for … the app commonly used by more than 170 million Americans after years of battles that began in August 2020, when President Donald Trump first unsuccessfully attempted to ban the app on national security grounds. The document states that US and global investors, including the cloud computing giant, Oraclethe private equity group Silver Lake and MGX, based in Abu Dhabi, will hold an 80.1% stake in the new joint venture TikTok USDS LLC, while ByteDance will retain 19.9%.

The details of the deal match those outlined in September, when Trump delayed until January 20 the implementation of the law banning the app unless its Chinese owners sell it as part of efforts to extract TikTok’s U.S. assets from the global platform. He also said the agreement met the terms of divestment requirements set out in a 2024 law.

Law approved in 2024

The new American company will be worth around $14 billionas Vice President JD Vance said in September. This figure was lower than analysts’ estimates. This new structure for TikTok responds to a law passed in 2024 under the administration of Trump’s predecessorJoe Biden, who forced ByteDance to sell TikTok’s U.S. operations or face a ban in its largest market.

US lawmakers, including Trump during his first term, had warned that China could use TikTok to exploit Americans’ data or exert influence through its sophisticated algorithm. After returning to the White House in January, Trump repeatedly delayed implementation of the law through successive executive orders. Currently, the deadline expires on January 23, 2026.

Chew said there was still work to be done before the deal was finalized. The agreement largely confirms a White House announcement in September that the creation of a new joint venture which would meet the requirements of the 2024 law.

“Following the conclusion of the agreement, the US joint venture… will operate as an independent entity with authority over data protection, algorithm security, content moderation and software security in the United States,” Chew said in the memo. Meanwhile, “TikTok Global’s US entities will manage global product interoperability and certain commercial activities, including e-commerce, advertising and marketing,” he noted.

The memo does not specify whether this unit would remain owned by ByteDance.. The 2024 law aimed to prevent Chinese authorities from accessing the personal data of TikTok users in the United States. TikTok admitted that employees based in China had access to US user data, but maintained that nothing was shared with the Chinese government.