A blockbuster deal has finally been agreed to prevent the Chinese Communist Party-linked video streaming social media platform TikTok from being banned in the United States.
ByteDance, the Chinese parent company of TikTok, has finalized binding agreements to sell over 80% of TikTok’s American assets to a trio of investors, the New York Post reports.
The company is hoping the deal will sidestep a government shutdown over national security fears.
This saga began back in August 2020, when President Donald Trump first pushed to ban the app.
The move sparked a long-running battle over its future in the States.
Now, ByteDance has teamed up with Oracle, Silver Lake, and Abu Dhabi-based MGX to create a new entity dubbed TikTok USDS Joint Venture LLC.
The ownership split of this venture sees Oracle, Silver Lake, and MGX each taking 15% for a combined 45%.
Meanwhile, ByteDance holds onto 19.9%.
The remainder goes to affiliates of existing ByteDance investors.
Set to close on January 22, this deal builds on terms floated in September when Trump delayed a ban enforcement to January 20, contingent on a sale meeting U.S. divestiture rules.
Trump confirmed the arrangement aligns with government demands.
The deal addresses years of concern that TikTok’s Chinese ties could jeopardize American user data.
While the White House has deflected questions to TikTok and Oracle stayed silent, the deal’s implications are massive for the app’s future here.
TikTok itself spun the news positively, stating it will allow “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
However, critics argue that ByteDance retaining nearly 20% ownership hardly feels like a clean break from potential foreign influence.
The national security fears arose over concerns that the Chinese Communist Party could access the data of millions of American users.
On Thursday, TikTok CEO Shou Zi Chew shared the update with staff.
Chew was likely aiming to ease tensions after a rollercoaster of uncertainty for the company’s U.S. operations.
For over 170 million American users, this could mean stability.
However, conservatives might question whether partial divestiture truly shields against data privacy risks.
This joint venture may end a drawn-out clash, but ByteDance’s lingering stake could still fuel skepticism among those wary of Big Tech and overseas control.
Still, the deal offers a pragmatic step forward, tackling at least some national security worries while preserving an app that’s become a cultural staple for millions.
Whether this compromise satisfies critics or just delays deeper scrutiny remains to be seen, but for now, TikTok’s American heartbeat keeps ticking.
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