TikTok Avoids US Ban as Oracle and Silver Lake Seal New Ownership Deal
TikTok has narrowly avoided a long-anticipated ban in the United States after its parent company, ByteDance, agreed to restructure ownership of the app’s US operations. The new deal, involving major investors such as Oracle and Silver Lake, reflects how geopolitics is increasingly shaping the future of global technology platforms.
Under the agreement, ByteDance will reduce its stake in TikTok US to 19.9%, staying below the threshold US regulators view as foreign control. Ownership of the restructured entity will be shared among American and allied investors, with Oracle, Silver Lake, and Abu Dhabi-based MGX each holding 15%, while existing ByteDance investors control just over 30%. The deal is expected to close on January 22 and brings an end to years of regulatory uncertainty.
The arrangement follows US legislation passed in 2024 that threatened to ban TikTok over national security concerns related to data privacy and Chinese influence. While the app will remain available to its more than 170 million American users, its future in the US now hinges on political approval rather than market performance alone.
One of the most debated aspects remains TikTok’s recommendation algorithm. US authorities have indicated that Oracle will license and oversee the algorithm, with TikTok stating it will be retrained using American user data. However, critics argue the deal does not fully resolve concerns around transparency and data protection.
For creators and businesses, the decision brings temporary relief. TikTok estimates over seven million US small businesses rely on the platform for marketing and sales. Still, uncertainty lingers as regulatory oversight tightens.
TikTok’s survival sets a powerful precedent: global tech companies may increasingly be forced into complex ownership and governance structures to operate in politically sensitive markets. In today’s digital economy, technology and geopolitics are no longer separable.
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