ByteDance has agreed to sell more than 80% of TikTok’s U.S. assets to American and global investors in order to avert a potential ban by the U.S. government. According to an internal company memo cited by Reuters on Friday (December 19, 2025), TikTok stated that ByteDance and TikTok have entered into a binding agreement with three investment managers—Oracle, Silver Lake, and MGX—to establish a new joint venture called TikTok USDS Joint Venture LLC.

Under the agreement, Oracle, Silver Lake, and Abu Dhabi–based MGX will collectively hold a 45% stake in the newly formed TikTok U.S. entity. This information confirms earlier media reports that first revealed the deal in September. The ownership structure allocates 50% of the joint venture to a consortium of new investors, with Oracle, Silver Lake, and MGX each holding 15%. Meanwhile, affiliates of ByteDance’s existing investors will own 30.1%, while ByteDance itself will retain a 19.9% stake.

TikTok CEO Shou Zi Chew shared details of the agreement with employees on Thursday (December 18, 2025) local time. The transaction is expected to be finalized on January 22, bringing to a close years of efforts by the U.S. government to force ByteDance to divest TikTok’s U.S. operations over national security concerns. ByteDance has not yet responded to requests for comment regarding the deal.

The agreement marks a significant step toward resolving uncertainty surrounding TikTok’s future in the United States, an issue that has persisted since August 2020, when then-President Donald Trump first sought to ban the short-form video app. TikTok currently has more than 170 million active users in the U.S.

The deal’s structure aligns with plans announced in September, when Trump postponed until January 20 the enforcement of legislation that would prohibit TikTok from operating in the U.S. unless ByteDance divested its Chinese ownership. Trump also stated that the agreement satisfied the government’s divestment requirements. Oracle declined to comment, while the White House referred inquiries to TikTok.

In the internal memo, TikTok emphasized that the agreement would allow more than 170 million Americans to continue discovering the world and accessing limitless opportunities as part of a vibrant global community.