According to meticulous reporting from multiple major media outlets—including Axios, The Hollywood Reporter, and CNBC—TikTok has concluded negotiations and formally finalized an agreement to divest its U.S. operations. Internal communications accessed by these publications reveal that TikTok’s chief executive officer, Shou Zi Chew, confirmed the transaction’s closing date as January 22. Upon completion, a consortium led by Oracle, the private equity firm Silver Lake, and Abu Dhabi-based MGX will collectively acquire a 45 percent stake in the newly configured entity. Meanwhile, the Chinese parent company, ByteDance, will maintain a residual ownership interest amounting to 20 percent. The balance of shares, Axios noted, will be distributed among affiliates tied to ByteDance’s current group of investors, preserving a measure of continuity in the firm’s financial and operational structure.
This announcement follows a turbulent period for the platform in the United States, during which TikTok temporarily ceased operations at the onset of January following the enforcement of the so-called ‘divest-or-ban’ legislation. This legal mandate required that TikTok either localize its ownership and governance within the U.S. or face an outright ban. Over the months that followed, then-President Donald Trump granted a succession of extensions, effectively delaying enforcement to allow the parties more time to formulate a suitable sale agreement that would satisfy national security concerns while ensuring the platform’s continued functionality for millions of American users. In September, after a series of complex negotiations involving government representatives from both the U.S. and China, the two countries reached a provisional ‘framework’ agreement—a diplomatic and economic understanding that enabled one further extension. This temporary leniency expired on December 16, marking the last feasible window for completing the deal.
In his internal memo to employees, Shou Zi Chew expressed profound gratitude for the dedication and perseverance of TikTok’s staff, emphasizing that their collective effort had allowed the platform to sustain high performance standards even amid political uncertainty and regulatory scrutiny. He underscored that the forthcoming transition in ownership would not detract from TikTok’s fundamental mission: to empower its global community of creators, deliver compelling content experiences for users, and support businesses that rely on its vast digital ecosystem. “Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world,” Chew wrote, according to The Hollywood Reporter. His message reinforced a tone of optimism and continuity, emphasizing that despite structural changes, the company’s creative and operational philosophies remain intact and forward-looking.
In terms of technology and data governance, preliminary reports suggest that the American branch of TikTok will continue employing a version of the sophisticated recommendation algorithm originally developed by ByteDance. However, this algorithm will be retrained specifically using U.S.-based user data and will function under the direct oversight of Oracle, which is expected to serve as both a technological partner and a trusted data custodian. This arrangement reflects broader efforts to assuage government concerns regarding data privacy and potential foreign influence. When approached for comment about the long-term operational implications of this restructuring, TikTok did not immediately issue a formal statement, as reported by The Verge. Overall, the finalized sale marks a pivotal turning point for TikTok—one that could redefine not only the company’s strategic trajectory in the American market but also the broader framework governing international technology partnerships and platform sovereignty in the digital age.
Sourse: https://www.theverge.com/news/847858/tiktok-sale-deal-memo-january-close
