TikTok moved to end a years-long political and legal battle on Thursday as Chief Executive Officer (CEO) Shou Chew told staff the company signed a deal to sell its U.S. unit to an American-led investor group, with the transaction set to close in January, according to reports.
Axios reported that the deal ends the years-long saga of forcing TikTok’s parent company, China-based ByteDance, to sell its operation in the U.S. to investors in the U.S., ultimately settling concerns about national security.
The publication noted that an internal memo from Chew shows the agreement is scheduled to close on Jan. 22, 2026.
Once signed, Oracle, Silver Lake and Abu Dhabi-based MGX will all collectively own 45% of the TikTok operation in the U.S.
TRUMP SIGNS EXECUTIVE ORDER ALLOWING TIKTOK DEAL TO PROCEED
FOX Business has reached out to TikTok for comment.
President Donald Trump in September signed an executive order that allows TikTok's U.S. operations to be moved away from the social media app's China-based owner ByteDance.
The deal set in motion the separation of TikTok’s U.S. operations from ByteDance to comply with a law that bans social media platforms subject to control by adversarial foreign governments like China.
BESSENT SAYS US, CHINA HAVE 'FRAMEWORK' ON TIKTOK DEAL; TRUMP, XI TO TALK FRIDAY TO FINALIZE
Trump said at the time that he has "great respect for President Xi" and added that he "very much appreciated that he approved the deal, because to get it done properly, we really needed the support of China, the approval of China."
The president said that the administration will be "announcing different things, but the U.S. comes out great, and I think China comes out great because they can have a very important legacy, and they have many other deals, you know, they have deals with us, and they have deals in this country, and they want to be treated fairly also."
The White House previously indicated Oracle and Silver Lake would be among the main owners of TikTok U.S. Earlier this week, a White House official said that ByteDance would own less than 20% of the firm, while existing shareholders and global firms would account for the remainder of the company's ownership. ByteDance investors would hold the 35% stake, per the report.
FROM BAN TO EMBRACE: TRUMP'S EVOLUTION ON TIKTOK AND WHAT COMES NEXT
Last year, Congress enacted a law signed by then-President Joe Biden that banned TikTok and other apps controlled by foreign adversaries amid national security concerns about data security and the use of platforms' algorithms for foreign influence operations.
The Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) requires that apps like TikTok be restricted in the U.S. unless they're divested from ownership subject to control by adversarial foreign governments, such as the Chinese Communist Party.
After the law survived a Supreme Court challenge, it took effect on Jan. 19, 2025, though it allowed a 90-day extension.
ByteDance initially refused to sell TikTok and after President Trump took office, he issued an initial 75-day delay in enforcing the law.
That was followed by another 75-day extension in April and a 90-day extension in June that was due to expire earlier this month before it was extended.
FOX Business’ Eric Revell and Sophia Compton contributed to this report.