TikTok signs Trump-backed deal

December 20, 2025

TikTok on Thursday finalised a landmark agreement to sell its US business to a consortium of American investors, a move that will allow the popular short-video platform to continue operating in the United States after years of political and regulatory uncertainty. The deal, involving Oracle, Silver Lake and Abu Dhabi-based investment firm MGX, is expected to close on January 22, according to an internal memo obtained by The Associated Press.
Under the terms of the agreement, a new TikTok US joint venture will be created. The consortium of new investors — Oracle, Silver Lake and MGX — will collectively hold a 50 per cent stake in the venture, with each firm owning 15 per cent. Another 30 per cent stake will be held by affiliates of existing ByteDance investors, while Chinese parent company ByteDance will retain 19 per cent ownership, the memo said.

As part of the deal, Oracle will play a critical role in overseeing TikTok’s US operations. White House officials confirmed that Oracle will license a copy of TikTok’s recommendation algorithm, expanding its existing responsibilities related to managing the vast amounts of data generated by American users. The move is aimed at addressing long-standing US government concerns over data security and potential Chinese government access to sensitive information. The agreement has not been without controversy. Oracle co-founder Larry Ellison, a close ally of former US President Donald Trump, is expected to have significant influence in the new venture. This has raised concerns among critics about the growing concentration of major media and technology platforms under the control of billionaire businessmen perceived to be politically aligned with Trump. Ellison’s son David is currently driving major changes at CBS, while Elon Musk controls X (formerly Twitter), Mark Zuckerberg oversees Facebook and Instagram, and Jeff Bezos owns The Washington Post.

The deal also follows months of delays and intense negotiations involving both Washington and Beijing. In September, Trump stated that he had discussed the TikTok arrangement with Chinese President Xi Jinping, claiming the Chinese leader had given his approval. A month later, US Treasury Secretary Scott Bessent announced that the two countries had reached a “final deal” on TikTok.
Ironically, Trump had previously threatened to ban TikTok during his first term in 2020, citing concerns over China’s handling of the COVID-19 pandemic and national security risks.
Confirming the development, TikTok chief executive officer Shou Zi Chew said that ByteDance and TikTok had signed binding agreements with the three investors, marking a significant turning point for the platform’s future in the US market.