Washington/Kathmandu- TikTok has signed a joint venture agreement with US and international investors, a move expected to allow the video-sharing platform to continue operating in the United States and avoid a potential ban linked to its Chinese ownership.
According to an internal memo seen by AFP, TikTok CEO Shou Chew informed employees that the company and its parent firm ByteDance have agreed to establish a new US-based entity with Oracle, Silver Lake and Abu Dhabi-based MGX as major investors.
Under the agreement, the US joint venture will be responsible for data protection, algorithm security, content moderation and software assurance for American users. Chew said the new entity will have exclusive authority to ensure that US user data, content and software remain secure.
As per the ownership structure, a consortium of new investors—including Oracle, Silver Lake and MGX—will collectively hold 50 percent of the venture, with each owning 15 percent. Affiliates of existing ByteDance investors will own slightly over 30 percent, while ByteDance itself will retain just under 20 percent, the maximum allowed for a Chinese company under US law.
TikTok’s US entities will also manage global product interoperability and oversee commercial activities such as e-commerce, advertising and marketing.
The deal responds to legislation passed during the previous US administration requiring ByteDance to divest TikTok’s US operations or face a ban. US officials have long raised concerns that TikTok could be used by China to collect data or influence public opinion.
The agreement largely confirms a White House announcement made in September, though Chew noted that further steps remain before the deal’s planned closure on January 22.
Industry analysts say the deal allows ByteDance to retain access to TikTok’s most lucrative market, though they caution that regulatory scrutiny in the US may continue.
