KEY HIGHLIGHTS
- TikTok has signed binding agreements to form a new US joint venture.
- American investors will hold majority control, cutting ByteDance below 20%.
- The deal could keep TikTok running in the US and calm US–China tensions.
If you’ve been scrolling TikTok at a kopitiam in Tampines or waiting for the MRT at Jurong East, this news matters more than it sounds.
TikTok’s CEO Shou Chew has confirmed that binding agreements are now signed to create a new US joint venture.
The goal is simple: keep TikTok alive in the US without breaking American security laws.
For creators, brands, and tech investors from Singapore to Silicon Valley, this could finally bring some clarity after months of uncertainty.
What Was Announced — In Plain English
In an internal note to staff, Shou Chew said he was “pleased to share some great news.”
The agreements involve Oracle, Silver Lake, and MGX, all well-known US investors.
Once completed, TikTok’s US operations will sit inside a new, independent company.
This company will have authority over US user data, content moderation, and software checks.
ByteDance, TikTok’s Chinese parent, will step back significantly.
| Item | What It Means |
|---|---|
| Ownership | US investors hold 50% |
| ByteDance stake | Reduced to below 20% |
| Data hosting | Oracle continues US cloud services |
| Algorithm role | Licensing discussed, control restricted |
| Status | Binding agreements signed |
Why the US Forced This Move
This deal didn’t come out of nowhere.
In 2024, the US passed a national security law that gave ByteDance a clear choice:
Sell TikTok’s US business or face a nationwide ban.
Washington has long worried about user data and influence risks tied to Chinese ownership.
That concern finally turned into law.
For TikTok, this joint venture is the only realistic way to stay in the American market.
How the New Structure Will Work
Here’s how the split looks.
The US joint venture will handle sensitive areas like:
- User data protection
- Algorithm security
- Content moderation
- Software audits
Meanwhile, TikTok’s global teams will still manage:
- Ads and marketing
- E-commerce features
- Cross-border app compatibility
Think of it as a firewall between US operations and the rest of TikTok’s global business.
Who Owns What After the Deal
Ownership is carefully designed to meet US legal rules.
- New US investors: about 50%
- Existing US ByteDance investors: around 30%
- ByteDance: just under 20%
That last number is key.
Staying below 20% helps TikTok comply with the US security law.
Oracle’s Quiet but Important Role
Oracle isn’t buying TikTok outright, but it’s deeply involved.
The company will continue providing cloud services for TikTok in the US.
This is part of Project Texas, a multibillion-dollar data hosting setup already in place.
Investors liked what they heard.
Oracle shares briefly jumped nearly 6%, and the stock is already up 84% this year.
Politics Still Loom Over the Deal
Even with agreements signed, politics hasn’t left the picture.
The framework is expected to be discussed between President Donald Trump and President Xi Jinping.
Both sides need to be comfortable before the deal is finalised.
Trump has already extended TikTok’s divestment deadline again, now until Dec. 16.
Without that extension, a US-wide ban could kick in.
Some legal experts question whether these repeated extensions are allowed.
But for now, TikTok stays online.
The Big Unknown: TikTok’s Algorithm
This is the heart of TikTok’s power.
China has said ByteDance may license the recommendation algorithm to the US company.
The US law, however, says ByteDance cannot have any operational role once the sale is done.
So who really controls the “For You” page in America?
That part still isn’t fully clear.
Why This Matters Beyond the US
TikTok has over 1 billion users worldwide, including 170 million in the US.
Any disruption there would ripple globally.
For Singapore creators, agencies, and brands using TikTok ads, stability in the US market helps keep the platform strong everywhere else.
It also removes a major sticking point in US–China relations, which affects trade, tech rules, and markets across Asia.
A Quick Look Back: How TikTok Got Here
TikTok began life in 2016 as Douyin in China.
The international version launched in 2017.
After merging with Musical.ly, growth exploded.
Dancers, home cooks, comedians — suddenly anyone could go viral.
That same success is what pulled TikTok into global politics.
What Happens Next
For now, TikTok keeps operating in the US.
The final structure still needs political approval and legal clarity.
But this is the strongest signal yet that a shutdown may be avoided.
As we’d say over kopi, it’s not fully settled — but at least the table is set.
FAQs
Is TikTok banned in the US right now?
No. TikTok is still operating while the deal process continues.
Will ByteDance still control TikTok in the US?
No. Its stake will drop below 20%, with no operational control.
Who benefits most from this deal?
TikTok users, creators, and US tech partners like Oracle.
Does this affect TikTok in Singapore?
Directly, no. But global stability helps the platform everywhere.
Is the deal final?
Not yet. Political approval is still needed.
