TikTok is close to securing its survival in the United States after months of regulatory uncertainty and stalled negotiations. According to U.S. media reports, a contract has already been signed to establish a new company that will oversee the American operations of the popular video-sharing platform. TikTok CEO Shou Chew informed employees of the development in an internal email, confirming the entry of strategic investors. These include software company Oracle, along with U.S.-based financial firm Silver Lake and Abu Dhabi’s MGX, which together are expected to hold around 45 percent of the new joint venture.
Approximately 20 percent of the shares would remain with Chinese parent company ByteDance, while roughly one third would stay in the hands of TikTok’s existing international investors. The transaction is expected to be completed on January 22 and is unlikely to affect TikTok’s operations outside the United States. TikTok initially declined to comment on the media reports, as political scrutiny surrounding the deal continues. The app’s future in the U.S. has been under pressure for months due to concerns that Chinese authorities could gain access to American user data, allegations repeatedly denied by both TikTok and ByteDance. Under a law passed last year, TikTok’s U.S. business was required to be separated from ByteDance by January 19, 2025, or face a nationwide shutdown.
However, President Donald Trump suspended enforcement of the law upon taking office and has repeatedly extended the grace period, claiming he had already secured approval from the Chinese government for the U.S. TikTok deal. The valuation of TikTok’s U.S. business has also sparked debate. Sources familiar with the matter told Axios that the division was valued at approximately $14 billion, a figure widely seen as low given TikTok’s scale, with around 170 million users in the United States.
Analyst Jasmine Enberg of Emarketer previously noted that TikTok’s U.S. advertising revenue alone could reach roughly $14 billion annually by 2026. The agreement has drawn political criticism, particularly from Democratic Senator Elizabeth Warren, who warned that Trump was granting increased control over media content to his billionaire allies. Oracle, one of the key investors, is controlled by Larry Ellison, a prominent supporter of Trump, further fueling concerns about media concentration, political influence, and control over information in the United States.
