The clock is ticking for TikTok's future in America as ByteDance finalises a pivotal new agreement. With the threat of a mandatory sell-off reaching a breaking point, the platform's massive community of influencers is bracing for a total transformation. This move marks a critical turning point that could redefine how millions of people create and share content online.
To keep the popular video-sharing app running nationwide, TikTok has partnered with a trio of major backers—Oracle, Silver Lake, and MGX. Together, these firms will establish a new American joint venture to protect the platform's future in the United States.
Finalising the Partnership
An internal note suggests the arrangement should conclude by 22 January. Within that message, CEO Shou Zi Chew informed staff that ByteDance and TikTok have formalised the legal contracts with the investment group.
Chew thanked the team in the note for their constant hard work and commitment, noting that their contributions allow the platform to function excellently. He added that their 'efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the US and around the world.'
TikTok's CEO Shou Chew told employees that the social media company and its parent ByteDance signed binding agreements with Oracle, Silver Lake and MGX to create a US joint venture majority-owned by American investors. @JMathieuReports has more https://t.co/KLkKXxejnx pic.twitter.com/NBnWiNbipV
— Bloomberg TV (@BloombergTV) December 18, 2025
With these contracts settled, the CEO urged staff to remain dedicated to serving their members, influencers, companies, and the worldwide TikTok audience. Initial news of this arrangement came via Axios.
Ownership Breakdown
A collection of backers will own 50% of the fresh American venture, with Oracle, Silver Lake, and the Emirati firm MGX each taking a 15% stake. ByteDance is set to retain 19.9% of the platform, while 30.1% will go to partners of its current shareholders, as stated in the note.
TikTok's CEO told employees that its parent company, ByteDance signed binding agreements to
— Evan (@StockMKTNewz) December 18, 2025
create a US joint venture majority-owned by American investors including Oracle $ORCL, Silver Lake, ad MGX - Bloomberg $ORCL stock is up 4% in after hours
🟢🟢🟢🟢 pic.twitter.com/B5eDE3wHGk
The document omitted the identities of the remaining financiers, and both the social media company and the White House refused to provide a statement.
New Governance and Security
According to the note, the American entity will be overseen by a fresh, seven-person board of directors, the majority of whom will be from the United States. Furthermore, the operation will be bound by conditions designed to 'protect Americans' data and US national security.'
The document specifies that Oracle will manage a local system to house information belonging to individuals in the United States. It further mentions that those using the app will enjoy the 'same experience as today.' At the same time, businesses will still be able to reach international markets without any disruption from the agreement.
Oversight and Content Control
According to the document, the app's code—the core technology behind its engaging video stream—is to be redeveloped using data from the States. This step aims to 'ensure the content feed is free from outside manipulation'. Additionally, the American business will manage all community guidelines and enforce rules within the region.
In the past, American authorities have warned that the ByteDance system could be vulnerable to interference from the Chinese government. They expressed fears that the state could use the technology to adjust what appears on the platform, making it difficult for the public to notice any hidden influence.
The software has been a primary concern in discussions about the app's security. Previously, Beijing insisted that the technology must remain subject to domestic oversight under law. However, the American legislation backed by both parties stated that any sale of the business must result in the platform severing its connection—particularly the source code—with ByteDance.
Resolution of Uncertainty
This agreement ends years of doubt about the future of the famous video app in America. Following the approval of a law by a large cross-party majority in Congress—which was later authorised by President Joe Biden—the platform faced a total ban. Without a transition away from the Chinese parent firm ByteDance, the service was scheduled to be shut down by the legal cutoff in January 2025.
The platform was offline for a few hours, yet the situation changed quickly. On his first day in the White House, President Donald Trump signed an executive decree to maintain the service. This move keeps the app active while his team continues to negotiate a deal to purchase the firm.
Sequential Extensions
A further three decrees were issued as Mr Trump continued to push back the deadline for a TikTok agreement, despite lacking a clear legal basis. The second occurred in April, during a period when officials believed a deal to reorganise the app under American ownership was imminent; however, these plans collapsed when Beijing withdrew following an announcement of trade levies.
A third extension was granted in June, followed by another in September, which the President claimed would allow the platform to remain functional while addressing safety concerns.
Impact and Market Reaction
TikTok boasts a user base of more than 170 million people in the United States. According to a Pew Research Center study released this autumn, roughly 43% of American adults under 30 say they get their news from the platform regularly—a figure that surpasses that of any other social media service, including YouTube, Facebook, and Instagram. Following news of the agreement, Oracle's stock price climbed by $9.07 (£6.78), or 5%, reaching $189.10 (£141.31) during late trading.
