TikTok and its parent company ByteDance have officially set up a new US-based venture to transfer part of TikTok’s operations to non-Chinese owners, securing the app’s continued presence in the United States and avoiding a potential nationwide ban.
Under the agreement, first announced in September by the Trump administration, certain parts of TikTok will be spun off into a new US entity managed by three investors: Oracle Corp., private equity firm Silver Lake Management LLC, and Abu Dhabi’s MGX.
The deal ends a years-long geopolitical and regulatory standoff that threatened to shutter TikTok in the US over national security concerns. In 2024, Congress passed legislation to ban the app unless ByteDance sold TikTok, citing fears that the Chinese government could access US user data or influence content. TikTok has consistently denied these claims.
