The U.S. and China have signed off on a deal for TikTok to be acquired by a group of investors led by tech giant Oracle and investment firm Silver Lake, reports Semafor.
TikTok last month signed off on the deal, which allows the app to continue to operate in the U.S. by addressing concerns about its Chinese parent company ByteDance.
Under the agreement, ByteDance will have a 19.9% stake and Oracle, Silver Lake, and the Emirati investment firm MGX will each hold a 15% share.
Another 30.1% will be held by affiliates of existing ByteDance investors, according to an internal memo sent out to employees by CEO Shou Zi Chew.
The U.S. venture will have a new, seven-member, majority-American board of directors, the memo said. It will also be subject to terms that "protect Americans' data and U.S. national security."
U.S. user data will be stored locally in a system run by Oracle.
A spokesperson for the Chinese embassy in the U.S. told Semafor, "China's position on TikTok has been consistent and clear. I have nothing new to share at the moment."
American officials have previously warned that ByteDance's algorithm is vulnerable to manipulation by Chinese authorities, who can use it to shape content on the platform in a way that's difficult to detect.
The algorithm has been a central issue in the security debate over TikTok.
China previously maintained the algorithm must remain under Chinese control by law.
But the U.S. law passed with bipartisan support said any divestment of TikTok must mean the platform cuts ties — specifically the algorithm — with ByteDance.
The deal marks the end of years of uncertainty about the fate of the popular video-sharing platform in the United States.
After Congress passed the law with wide bipartisan support — and then-President Joe Biden signed it — TikTok was set to go dark in the U.S. in January 2025 unless it found a new owner to replace China's ByteDance.
For several hours, it did. But on his first day in office, President Donald Trump signed an executive order to keep it running while his administration tried to reach an agreement for the sale of the company.
Three more executive orders followed, as Trump continued to extend the deadline for a TikTok deal.
The Associated Press contributed to this report.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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