ByteDance, the Chinese owner of TikTok, has signed the binding agreements with US investors to avoid a US government ban.

This significant move ends several years of debate that first started in August 2020 when US President Donald Trump attempted to ban the app for the first time. The details of the new deal are in line with President Trump’s September 2024 plans, which saw him delay the ban until January 2025 unless ByteDance could sell TikTok’s US assets.

“We have signed agreements with investors regarding a new TikTok US joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” Shou Zi Chew, CEO of TikTok, said to employees in a memo seen by Reuters.

Reuters reported that, under the deal, US and global investors will hold an 80.1% stake, with ByteDance retaining a 19.9% stake in the new joint venture.

Chew added the joint venture will “operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance”.

He also said that TikTok’s US entities “will manage global product interoperability and certain commercial activities, including e-commerce, advertising and marketing”.

Oracle, Silver Lake and Abu-Dhabi-based MGX will collectively own 45% of the new entity, according to the memo seen by Reuters. The three companies all invest and deploy the latest cutting-edge technologies.

Oracle will reportedly serve as the “trusted security partner” and be responsible for auditing and validating compliance. This includes safeguarding sensitive US user data, “which will be stored in a trusted and secure cloud environment in the United States run by Oracle,” the memo said.

Data from users in the US will reportedly be stored locally.

ByteDance will also appoint one of seven board members for the new entity, with the US holding most of the other seats. TikTok said to Reuters on Thursday the new joint venture will be “responsible for US data protection, algorithm security, content moderation and software assurance”.

The memo added that the deal would enable “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community”.

Trump has previously had plenty to say about TikTok – which he partly credits for helping him to win re-election in 2024. The new deal comes after fears TikTok information was being given to the Chinese government, something that ByteDance has continually denied.

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