Texas Border Business
TikTok has signed an agreement to sell its US assets to a group of American investors. This move could secure the app’s future in the United States after months of political and legal uncertainty. TikTok CEO Shou Chew confirmed the development in a memo to employees, obtained by CNN.
The deal follows a US law passed last year that requires TikTok to separate its US operations from its China-based parent company, ByteDance, or face a nationwide ban. Although the transaction is not yet complete, the agreement marks a significant step toward meeting those legal requirements. CNN first reported details of the memo, and Axios initially reported the deal.
“We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” Chew said in the memo, according to CNN.
President Donald Trump supported the deal and repeatedly delayed enforcement of the ban-or-sale law during negotiations. The Trump administration said in September that it had reached an understanding with China to allow TikTok’s US operations to be transferred to mostly American ownership.
As part of that process, Trump signed an executive order declaring the agreement a qualified divestiture and delaying enforcement of the law for 120 days to give the parties time to finalize the transaction, CNN reported.
Chew told employees that additional steps are still required before the deal is complete, but said the companies involved are working toward closing the transaction by January 22, 2026. He added that both ByteDance and TikTok have agreed to the terms.
Under the law, which technically took effect in January, TikTok is banned in the United States unless ByteDance divests roughly 80 percent of its US assets to non-Chinese investors.
According to Chew’s memo, control of the US version of TikTok would move to a new joint venture. Fifty percent of that venture would be owned by a consortium led by Oracle, private equity firm Silver Lake, and Emirati-backed investment firm MGX. Just over 30 percent would be held by affiliates of existing ByteDance investors, while ByteDance would retain a 19.9 percent stake.
If completed, the agreement would allow TikTok to continue operating in the United States while complying with federal law, preserving access to the platform for millions of users and creators nationwide, according to CNN reporting.
