TikTok’s parent company ByteDance has reportedly reached a binding agreement to restructure the ownership of TikTok’s U.S. operations, marking a major step toward resolving long-standing national security concerns raised by American lawmakers and regulators.
According to Bloomberg, the deal is expected to close on January 22 and will establish a new U.S.-based joint venture. Under the agreement, American investors, including Oracle, Silver Lake, and MGX, will collectively hold a 45 percent stake in the U.S. entity. Existing ByteDance affiliates will retain close to one-third ownership, while ByteDance itself will maintain roughly a 20 percent stake.
The restructuring is designed to limit Chinese control over TikTok’s U.S. business, a key demand from U.S. officials who have argued that the platform’s prior ownership structure posed potential risks related to data security and foreign influence. TikTok has repeatedly denied allegations of improper data sharing, but the company has faced mounting pressure over several years to separate its U.S. operations from its China-based parent.
If finalized as planned, the agreement would represent a significant milestone for TikTok as it seeks to maintain access to its massive American user base while complying with regulatory demands. The move could also set a precedent for how foreign-owned technology companies navigate U.S. oversight moving forward.