According to an internal communication reviewed by Business Insider, TikTok informed its employees that it has officially finalized an agreement with a consortium of investors to establish a joint venture dedicated to its United States operations. This crucial arrangement is designed to permit the social media platform to function as a fully independent corporate entity within the US, thereby addressing prolonged political and regulatory concerns surrounding its ownership. The internal memo described the move as a decisive step enabling TikTok to continue its activities in the American market without the direct control of its parent company, ByteDance, an issue that has been the focal point of legislative and national security scrutiny for several years.
This newly confirmed deal follows an extended period of uncertainty beginning more than a year earlier, when the United States Congress enacted legislation mandating that ByteDance either divest its American holdings or face a complete prohibition of the app within the country. Lawmakers had determined at the time that TikTok qualified as a company under the influence of a so-called “foreign adversary,” leading to the passage of the Protecting Americans from Foreign Adversary Controlled Applications Act. Under the terms of this statute, any platform owned or governed by entities perceived as hostile or foreign-controlled was subjected to strict oversight, prompting ByteDance and TikTok to challenge the measure through the American judicial system.
TikTok and ByteDance sought legal relief by asserting that the new law infringed upon constitutional rights, particularly those safeguarded by the First Amendment, which protects freedom of expression. Despite their argument that the legislation unjustly restricted digital communication and user access to global information networks, the Supreme Court, in a decision issued in January, ultimately upheld the validity of the divest-or-ban law. This ruling effectively compelled TikTok to pursue an urgent restructuring of its American presence. The company thus found itself under immense pressure to identify legitimate domestic partners who could satisfy regulatory requirements and ensure the platform’s continued availability to tens of millions of US users.
In the months following the Supreme Court’s determination, TikTok navigated an atmosphere of intense negotiation and political deliberation. The White House extended the statutory deadlines multiple times, indicating both the complexity of the issue and the government’s apparent desire to reach a mutually acceptable solution rather than proceeding immediately with a full prohibition. During this time, conflicting reports circulated about potential investors and structure proposals, illustrating both the commercial magnitude of TikTok’s US business and the broader geopolitical context influencing its future.
Eventually, in September, President Donald Trump signed an executive order that formally sanctioned the sale of TikTok’s entire US operation for an estimated valuation of approximately $14 billion. The order’s announcement included the confirmation that the technology giant Oracle and its founder, business magnate Larry Ellison, were involved in the consortium of investors expected to take part in the acquisition. This endorsement by the Trump administration not only provided political and legal clarity but also marked a symbolic culmination of months of strategic discussion. The deal effectively transformed TikTok’s North American outlook from one of uncertainty and potential exile to one of renewed stability under a domestically anchored framework.
While details of the final structure continue to develop and further announcements are expected in the coming weeks, the agreement signifies the beginning of a new chapter for TikTok’s operations within the United States. It encapsulates both the resilience of the company amid complex international tensions and the evolving interplay between global technology platforms and regulatory authorities. As additional information emerges, observers anticipate that this reorganization will serve as a case study in modern digital governance, illustrating how cross-border technology firms can adapt their models to comply with differing national constraints while maintaining their global identity. This story remains in progress, and updates will be provided as more information becomes available.
Sourse: https://www.businessinsider.com/tiktok-reaches-deal-with-investors-on-its-us-business-2025-12
