The well-known, short-form video application, TikTok, has made strides towards securing its future in the U.S. market. The company’s U.S. assets will be sold to an American investor group following the signing of necessary agreements. This move is a significant step towards relieving the app from its present Chinese owners, ByteDance, as mandated by a law passed last year and validated by the Supreme Court. ByteDance is required to relinquish at least 80% of TikTok’s U.S. assets or face a potential ban.
TikTok’s CEO, Shou Chew, informed the company’s staff about the new developments through a memo delivered on a Thursday. The memo highlighted the signing of agreements with investors that would result in the creation of a new TikTok U.S. joint venture. This venture would enable the 170 million American users of the app to continue being part of the global community that TikTok provides.
The U.S. had previously shown significant bipartisan support for a TikTok ban due to worries about ByteDance’s collection of personal data from American children and possible propagation of Chinese government propaganda through the app’s feeds. However, the company’s crucial algorithm, which powers the ‘For You’ page and controls user feeds, will remain with ByteDance. ByteDance will license a copy of the source code to the new U.S. entity.
The deadline for the sale of TikTok had been extended multiple times during the second Trump presidency. The deadline was pushed further when President Trump signed an executive order, following a deal with China, which allowed the transfer of control of TikTok’s U.S. operations to American investors. The executive order provided a qualified divestiture, delaying the enforcement of the deal’s deadline for 120 days.
Interestingly, Americans spend more time on TikTok each day than on YouTube, Instagram, and Facebook.
Despite the leaps made in the transaction, more work remains before the sale can be finalized. The current target for the deal’s closure is January 22nd, 2026. ByteDance and TikTok have come to an agreement on the terms of the deal. A new American entity, TikTok USDS Joint Venture LLC, will be created as part of the agreement.
Three companies will jointly own 50% of TikTok USDS Joint Venture LLC. These are Oracle, Silver Lake, and MGX. Oracle is a U.S. firm tasked with storing TikTok’s data in the U.S. Silver Lake is a U.S. private equity firm with ties to the tech and media industries. MGX is an Abu Dhabi-based firm responsible for providing funding.
Other equity partners include affiliates of existing investors, who hold 30.1% stake in the venture. These investors are U.S.-based firms, such as General Atlantic and Susquehanna, which had already invested in ByteDance globally. ByteDance, the original Chinese parent company, will retain a 19.9% stake, ensuring that the new venture does not fall under the classification of “foreign controlled”.
TikTok’s global influence is undeniable, as its 1.59 billion monthly active users in early 2025 made it the fifth-largest social media platform globally. In the U.S. alone, there are 135.79 million users, the highest of any country. The app also boasts notable financial success, generating $23 billion in global revenue last year, with advertising making up 77% of this revenue.
In terms of user demographics, the majority of TikTok’s user base (71%) is aged between 18 and 34, totalling 1.05 billion individuals. Users aged 45 and above make up a mere 3.6% of the total user base. Regarding gender distribution, 55.7% of TikTok users are male, with women comprising 44.3%.
American users spend an average of 52 minutes daily on the platform, surpassing the average time spent on YouTube (48 minutes), Instagram (35 minutes), and Facebook (30 minutes).
What is the current status of TikTok’s U.S. operations?
The short-form video app has taken steps towards securing its future in the U.S. market by signing agreements that enable the sale of its U.S. assets to an American investor group.
What are the implications of the new investor agreements?
The crucial algorithm of TikTok, which powers the ‘For You’ page and controls user feeds, will remain with ByteDance, while a copy of the source code will be licensed to the new U.S. entity.
Who are the new investors in TikTok?
Three companies will jointly own 50% of the newly created entity—TikTok USDS Joint Venture LLC. These are Oracle, Silver Lake, and MGX. Other equity partners include affiliates of existing investors and ByteDance.
