Most people are familiar with the usual social media platforms – Facebook remains popular, Instagram is still widely used, and X (formerly Twitter) often leaves users feeling negative. But TikTok is the go-to app for younger generations. Despite its popularity, TikTok hasn’t been fully approved for use in the United States since around 2020 because it’s owned by the Chinese company ByteDance. This year, the U.S. government warned that TikTok could be banned if ByteDance doesn’t sell the company. Recent reports suggest that ban is now likely to happen.
According to Deadline, TikTok has reached agreements with three investors: Silver Lake (a private equity firm), Oracle (a U.S. tech company), and MGX (an investment firm owned by Abu Dhabi). These companies will partner to create a new U.S. business called TikTok USDS Joint Venture LLC. The deal is expected to be finalized on January 26, 2022.
The proposed TikTok U.S. deal involves a new ownership structure. A group of investors – including Oracle, Silver Lake, and MGX, each with a 15% stake – will collectively own 50% of the U.S. business. Current ByteDance investors will hold 30.1%, while ByteDance itself will retain 19.9%. This arrangement is designed to meet government requirements for ByteDance to divest ownership, ensuring that less than 20% of the company is owned by a Chinese entity, which the U.S. government considers a potential adversary.
Honestly, the details get pretty complicated with all the legal and business jargon, but basically, this deal means TikTok can continue operating in the U.S. legally, which is fantastic news for those of us who love the app! And even more importantly, it seems like it will finally protect American users’ data from being accessed by foreign entities – that was the whole reason people were worried about it being banned in the first place, and it’s such a relief to hear that’s being addressed.
This deal also involves the United Arab Emirates and Oracle, a company led by Larry Ellison – a strong supporter of Donald Trump and the father of the new CEO of Paramount. Oracle already handles TikTok’s data and technology needs in the U.S., which makes the quick approval of this merger by the president quite surprising.
Kyle Anderson is a Senior Editor at TopMob and the host of the weekly podcast, Laser Focus, where he dives deep into pop culture. He also writes film and TV reviews, and you can find him on Letterboxd.
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2025-12-19 21:33