According to the information provided, the deal scheduled for January 22 will conclude years of efforts by the U.S. government to force ByteDance to divest its assets in the country due to national security concerns.
These new agreements are a continuation of the arrangements reached in September when President Donald Trump suspended the implementation of a law that could lead to a ban on the app if it was not sold.
In TikTok's statement, they noted that signing the agreement would allow "more than 170 million Americans to continue discovering a world of limitless possibilities within an important global community."
Under the terms of the deal, ByteDance will retain 19.9% of its business, while Oracle, Silver Lake, and MGX will each receive 15% of the shares. The remaining 30.1% will go to affiliates of existing ByteDance investors.
Earlier, the White House confirmed that Oracle, co-founded by Trump supporter Larry Ellison, would receive a license to use TikTok's recommendation algorithm as part of the deal.
The discussion of the deal has dragged on for several months.
In April 2024, under President Joe Biden's administration, the U.S. Congress passed a bill to ban TikTok if it was not sold, which was set to take effect on January 20, 2025. However, Trump postponed its implementation several times during negotiations over the transfer of ownership rights.
In September, Trump reported that he had a phone conversation with Chinese President Xi Jinping, who, according to him, approved the deal. After a personal meeting between the leaders in October, the future of the app remained uncertain.
The situation with TikTok has escalated amid ongoing tensions between the U.S. and China over trade and other issues. Alvin Greylin, a lecturer at the Massachusetts Institute of Technology, noted: "TikTok has become a bargaining chip in negotiations between the U.S. and China." He stated that the current approval from Beijing for the deal appears not as a capitulation but as a step toward de-escalation, allowing both sides to claim victory.
In response to a request for comment, the White House redirected questions to TikTok. Comments from Oracle and Silver Lake were also not received, while the BBC reached out to MGX for their opinion.
The deal has faced criticism from Democratic Senator Ron Wyden, who stated that it "will not ensure the privacy protection of American users." As part of the agreement, TikTok's recommendation algorithm will be reprogrammed using data from American users to ensure protection from external interference.
"It is unclear whether the TikTok algorithm will be placed in more reliable hands," noted Senator Wyden, who opposed the 2024 bill and supported extending TikTok's operation to give Congress more time to address threats from China.
Some users are also expressing concerns about attracting new investors. Small business owner Tiffany Chianci, who has over 300,000 followers and nearly four million likes on the platform, expressed hope that new investors would maintain the existing user experience for entrepreneurs like herself: "I hope that small business owners will be protected," she said.
According to TikTok, more than seven million small businesses in the U.S. use the platform to promote their goods and services. "For now, I am withholding judgment on whether the app will remain for small businesses," Chianci added, choosing TikTok to promote her products due to more favorable profit-sharing terms compared to competitors like Meta.
Over the past year, she has actively organized protests in Washington and on TikTok aimed at protecting the app.
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