TikTok has signed a deal backed by President Donald Trump to spin off its US assets into a new entity controlled by a group of mostly American investors, CEO Shou Chew told employees in a memo on Thursday.
While the transaction has not yet been finalised, the move brings TikTok closer to securing its long-term future in the United States.
The development follows legislation passed last year requiring the US version of the app to be separated from its parent company, ByteDance, or face a ban in the United States.
Trump repeatedly delayed enforcement of the law as his administration worked to broker a deal that would shift control of the popular app into American hands.
“We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” Chew said in his memo.
Under the agreement, the US TikTok app will be operated by a new joint venture, 50% of which will be owned by a consortium of investors that includes tech company Oracle, private equity firm Silver Lake, and Emirati-backed investment firm MGX.
Just over 30% of the joint venture will be held by affiliates of certain existing ByteDance investors, while ByteDance will retain a 19.9% stake, according to Chew’s memo.
Chew said there are still steps to complete before the deal is finalised, but the parties are working toward closing the transaction by January 22, 2026. ByteDance and TikTok have both agreed to the deal’s terms, he said.
In September, the Trump administration said it had reached an agreement with China to transfer control of TikTok’s US operations to a group of mostly American investors.
Trump later signed an executive order declaring the deal a qualified divestiture and delaying enforcement of the ban-or-sale law for 120 days to allow time for the transaction to close.
The US law, which technically took effect in January, bans TikTok unless ByteDance divests approximately 80% of its US assets to non-Chinese investors.
Under the proposed structure, the new US entity will retrain TikTok’s algorithm using American user data, while Oracle will oversee the storage of US user information, as previously outlined by White House officials.
The US joint venture will also assume responsibility for content moderation for American users. However, Chew’s memo indicates that the ByteDance-controlled global TikTok business will continue to handle e-commerce, advertising, and marketing functions for the US platform.
The deal is expected to require approval from the Chinese government before it can close.
While Trump has said Chinese President Xi Jinping supports the agreement, Beijing has not formally confirmed its approval. Regulatory clearances from authorities in both countries are also expected to be required.
