ByteDance Signs Deal to Prevent TikTok Ban in the United States

Washington / Beijing Chinese technology giant ByteDance, the parent company of TikTok, has announced that it has signed a strategic partnership agreement with American investment firms, a move that will allow TikTok to continue operating in the United States and avoid a long-threatened shutdown.

The agreement marks a major turning point in TikTok’s future in the U.S., following years of political pressure and national security concerns raised by successive American administrations.

Background of the TikTok Ban Threat

Efforts to restrict or ban TikTok in the United States began in August 2020, when then-President Donald Trump initiated moves to block the app over fears that user data could be accessed by the Chinese government.

The pressure continued under President Joe Biden, and in April 2024, U.S. lawmakers passed legislation requiring ByteDance to sell TikTok to American companies by January 2025 or face a complete ban in the country.

However, after Donald Trump returned to office, his administration suspended enforcement of the law, a decision later upheld by the U.S. Supreme Court, opening the door for negotiations.

Details of the New Agreement

ByteDance confirmed that it has signed a security and investment agreement that restructures TikTok’s ownership and oversight in the United States.

Under the deal:

• A new entity, TikTok USDS Joint Venture LLC, will oversee TikTok’s U.S. operations
• American investment firms Oracle, Silver Lake, and MGX (based in Abu Dhabi) will collectively hold 80.1% ownership
• ByteDance will retain a minority stake of 19.9%
• A U.S.-based security company will be responsible for safeguarding TikTok user data

This ownership structure is intended to ensure that TikTok’s U.S. operations remain under American control, addressing longstanding national security concerns.

Trump Welcomes the Deal

President Donald Trump welcomed the agreement in a message posted on social media, describing it as a victory for American oversight and business interests.

“TikTok will now be controlled by a strong group of American investors,” Trump said.

He also publicly thanked Chinese President Xi Jinping for approving the deal, acknowledging China’s role in allowing the agreement to move forward.

“We worked together, and you approved this agreement. It could have gone very differently, but we are pleased with this outcome,” Trump added.

What This Means for TikTok Users

The deal ensures that TikTok will remain available to millions of American users, creators, and businesses who rely on the platform for entertainment, marketing, and income.

With enhanced security measures and majority American ownership, the agreement aims to stabilize TikTok’s operations while reducing geopolitical tensions surrounding data privacy and foreign influence.