TikTok’s US Future Secured as Washington and Beijing Finalise Sale Deal

TikTok’s US Future Secured as Washington and Beijing Finalise Sale Deal

American investors take control of TikTok’s US business, ending years of political uncertainty

The United States and China have finalised a long-awaited deal that will see TikTok’s American operations transferred to a group of US-backed investors, bringing an end to years of uncertainty over the video app’s future in the US. The agreement follows prolonged political pressure and avoids the threat of an outright ban.

TikTok US Business Sold to Investor Group

Under the agreement, the US version of TikTok will become majority-owned by a consortium of investors backed by Donald Trump.

The investor group includes:

• Oracle
• Silver Lake
• MGX, an investment firm based in the United Arab Emirates

The deal allows TikTok to continue operating in the US, narrowly avoiding a forced shutdown ahead of a takeover deadline set by the Trump administration.

ByteDance Retains Minority Stake

TikTok’s Chinese parent company, ByteDance, will retain a 19.9% minority stake in the US business. According to reports, Oracle, Silver Lake and MGX will each hold stakes of around 15% and act as managing investors.

Adam Presser has been appointed chief executive of the new US-focused entity, which will operate independently from ByteDance.

Trump Welcomes the Agreement

Following the announcement, Trump praised the outcome on Truth Social, saying he was “so happy to have helped in saving TikTok”. He also thanked Chinese President Xi Jinping for not blocking the deal.

Trump later told reporters that he plans to visit China in April, with Xi expected to visit the US later in the year, signalling a potential easing of tensions following the agreement.

Why TikTok Faced a US Ban

The deal ends a long-running political battle that began over national security concerns. In 2024, former president Joe Biden signed legislation requiring ByteDance to sell TikTok’s US operations or face a ban.

Lawmakers argued that TikTok could be forced to share user data with the Chinese government or allow Beijing to influence content through its algorithms. TikTok and ByteDance repeatedly denied these claims, saying US user data was protected and stored securely.

Despite the controversy, TikTok remains hugely popular in the US, with more than 150 million active users, making America its largest market.

A Shift in Trump’s Stance

While Trump originally signed an executive order during his first term that could have banned TikTok, he later reversed his position, arguing that a ban would harm creators and hand more power to rival social media platforms.

His backing of the sale has been critical in pushing the deal through, providing political support for an investor-led solution rather than an outright ban.

Wider Implications for Social Media Regulation

The TikTok agreement comes as governments worldwide continue to debate tighter controls on social media. Countries including the UK are considering restrictions similar to Australia’s proposed ban on social media use for under-16s.

The resolution of TikTok’s US ownership may set a precedent for how governments balance national security concerns with the economic and cultural impact of global technology platforms.

What Happens Next

With ownership settled, TikTok’s focus will now turn to maintaining user growth, supporting creators and reassuring regulators about data security. For investors and advertisers, the deal removes a major source of uncertainty.

For millions of users, it means TikTok will remain a central part of the US social media landscape — at least for the foreseeable future.

Sources: (SKY.com, Reuters.com)