Washington | In a major development surrounding the future of popular short-video platform TikTok, the company has confirmed a change in ownership structure that will allow the app to continue operating in the United States without facing a ban. TikTok has signed a spin-off deal with a group of American investors, ensuring that its US operations will now be controlled by American entities.
TikTok CEO Shou Zi Chew announced that following the agreement, TikTok will function as a new company in the United States, with operational control firmly in American hands. The move effectively removes the threat of a nationwide ban that had been looming over the app for months due to national security concerns raised by US authorities.
The decision follows a law passed earlier this year under the Donald Trump administration, which required TikTok’s Chinese parent company, ByteDance, to either sell its US business to an American company or face a complete shutdown. With the support of US policymakers, the newly signed deal allows TikTok to comply with the law while maintaining uninterrupted services for its massive American user base.
In an internal memo to employees, Shou Zi Chew said the company had finalised agreements with investors to establish a new TikTok US joint venture. He highlighted that more than 170 million Americans would continue to remain part of the TikTok community as a result of this arrangement.
Under the new structure, the TikTok US entity will be governed by a seven-member board, the majority of whom will be American nationals. The joint venture will see 50 percent ownership held collectively by Oracle, Silver Lake, and Abu Dhabi-based investment firm MGX. Around 30 percent will remain with existing ByteDance investors, while ByteDance itself will retain a 20 percent stake.
Oracle will play a key role as TikTok’s “trusted security partner” in the United States. The company will oversee data security and auditing responsibilities, addressing longstanding concerns related to user data protection and national security.
The deal is expected to be formally completed by January 22, 2026. Once finalised, it will also bring an end to sustained pressure on ByteDance from US authorities to divest its American operations.
The announcement has reignited discussions globally, including in India, where TikTok has remained banned since 2020. While there is no official indication of a policy shift in India, the US resolution has sparked speculation about whether similar pathways could ever be considered elsewhere.
