You may recall the infamous executive order Donald Trump signed last September, which determined the future of TikTok’s US operations. Three months later, the sale agreement appears much closer to being formalized and finalized. The process is progressing with more concrete steps than expected, and the clouds of uncertainty are slowly dissipating.
ByteDance and US investors reach agreement: TikTok’s fate decided
According to information shared by Bloomberg, TikTok CEO Shou Chew made a very important announcement to his employees. Chew announced that TikTok and its parent company ByteDance have officially signed an agreement regarding control of the app’s US operations. This development clearly indicates that the long-running negotiation process has now reached its final stages.
Looking at the details of the agreement, the terms appear to be largely the same as the framework Trump announced publicly earlier this year. A consortium of major US investors, including Oracle, Silver Lake, and MGX, will hold a majority stake in the newly formed company. Chinese tech giant ByteDance will retain a smaller stake in the venture.
According to a memo sent to employees by CEO Chew, the deal is expected to close completely on January 22, 2026. Following the closing, this new joint venture, built upon the existing TikTok US Data Security (USDS) organization, will operate as a fully independent entity.
This new company will have full and independent authority over the protection of US data, algorithm security, content moderation, and software assurance. TikTok has not yet officially responded to requests for comment on the matter.
However, the most uncertain aspect of the process remains the approach of Chinese officials to this agreement. While Trump stated in September that China had fully approved the deal, no clear outcome has emerged from the negotiations between the parties. In October, the Chinese Ministry of Commerce stated that they would work with the US to resolve the issues.
If the deal is finalized next month as planned, it will come almost a year after Trump’s initial decision to postpone the law that would have banned or forced the sale of the app. There have been numerous postponements throughout the process. So, what are your thoughts on this sale process and the future of TikTok? Do you think the app coming under US control will affect the user experience?
