ByteDance Reaches Agreement to Transfer TikTok U.S. Operations
New York, December 20, 2025
Chinese tech giant ByteDance has signed binding agreements to hand over control of TikTok’s U.S. operations to a consortium of American investors, led by Oracle, Michael Dell, and Rupert Murdoch. The move comes after years of uncertainty over potential U.S. restrictions and follows intervention from President Donald Trump.
Deal Delays U.S. Divestment Deadline
The agreement delays enforcement of U.S. legislation requiring TikTok to divest from Chinese ownership until January 20, 2026, giving the company time to restructure its American operations. The consortium reportedly includes “four or five world-class investors,” as Trump referenced in September 2025.
Addressing National Security Concerns
The U.S.-based operational structure is designed to mitigate concerns over user data and influence, separating TikTok’s American platform from ByteDance’s global network. Proponents say the deal safeguards national security while preserving TikTok’s presence in the U.S., which counts over 170 million American users.
Critics Question the Nature of Divestment
Some analysts argue the arrangement resembles a franchise model rather than a full sale, but investors and regulators maintain it addresses the core concerns about foreign control and propaganda.
Key Winners: Oracle and Larry Ellison
The agreement marks a strategic win for Oracle founder Larry Ellison, consolidating U.S. oversight of one of the world’s most popular social media platforms. Rupert Murdoch and Michael Dell also strengthen their stakes in the app’s American operations, highlighting a trend of high-profile U.S. tech investors reshaping global platforms.
TikTok’s Future in the U.S. Secured
With this deal, TikTok avoids an imminent U.S. ban and positions itself for continued growth in the American market. Regulators and investors will now monitor the operational separation to ensure compliance with U.S. data security and corporate governance standards.
