A big and big deal has been made to keep the TikTok app running in America. News agency AFP has received an internal memo of the company, which states that TikTok has entered into a joint venture agreement with some big investors to continue its app in the US and avoid a possible ban related to its Chinese-owned company. TikTok CEO Shou Zi Chew told his employees in a memo that the company and its parent company ByteDance have agreed to form a new US-based company with Oracle, private equity firm Silver Lake, and Abu Dhabi investor MGX.
The purpose of this agreement is to fulfill the conditions of the US law of 2024, which said that TikTok’s American operations should be sold or the app should be closed completely. According to Reuters report, in this new arrangement, American and global investors will have more than 80 percent stake in the new joint venture. ByteDance will be left with only 19.9 percent stake, which is the maximum allowed ownership rights for a Chinese company under US law. Oracle, Silver Lake and MGX together will hold 45 percent stake in it (15 percent each). Apart from this, companies associated with ByteDance’s existing investors will hold approximately 30.1 percent stake.
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Provide assurance to American users
Shou Zi Chew told employees that this new American joint venture would operate like a completely independent company. It will have full authority to guarantee the security of American users’ data, security of algorithms, content moderation (i.e. which content to show or not) and software. According to AFP, Chew said that this new company will have the special authority and responsibility to assure American users that their content, software and data are completely safe. The Reuters report further states that Oracle will become TikTok’s ‘trusted security partner’ in this entire setup. It will be the responsibility of Oracle to ensure compliance with all the rules, conduct audits and keep the sensitive data of American users safe.
still some more work left
All this data will be stored on Oracle’s cloud servers inside America. The new company will also handle some business activities like advertising, marketing and e-commerce, while TikTok’s US units will manage engagement with global products. The entire agreement is scheduled to be completed on January 22, 2026, although Chew told employees that there is still some more work to be done. According to AFP, this memo confirms for the first time that TikTok has officially signed the framework of the deal suggested by the White House in September.
Tried to ban TikTok before too
This step has been taken after several years of pressure from American lawmakers. Lawmakers believe that the Chinese government can use TikTok’s algorithm to obtain data from Americans or influence their opinions. US President Donald Trump had tried to ban TikTok during his first term, but now after returning to the White House, he kept delaying the implementation of this law by issuing executive orders several times. Trump himself has said that TikTok helped him win re-election, because the app has more than 170 million users in America. Trump has openly supported this new deal and had earlier described Oracle founder Larry Ellison, who is his old friend, as playing an important role in this deal. According to AFP, Larry Ellison has recently come into the limelight again due to large media and technology investments.
criticism is being received
However, this deal has also been criticized by some American leaders. The Reuters report quoted Democratic Senator Elizabeth Warren as saying that answers to many questions have still not been received. He accused Trump of allowing TikTok to come into the ‘control of billionaires’. Warren said that Americans should know whether the President has made any secret agreement for this “billionaire takeover”.
Tiktok banned in India also
Talking about India, earlier in the year 2020, TikTok was banned in India due to security reasons. The Indian government had banned 59 Chinese apps, which included TikTok. The government had taken this step under Section 69A of the Information Technology Act. At that time the government said that the activities of these apps were against India’s sovereignty, integrity, security and public order. Not only TikTok was included in the list of this ban but also popular apps like Shareit, UC Browser, Kwai, Vigo Video and Clash of Kings were included.
Will there be a break on the ban in India?
This TikTok agreement reached in America will not have any direct impact in India, because India had banned TikTok in 2020 due to national security and data privacy reasons. India’s ban is based on its own decisions and evidence, so US investment alone or the new ownership structure does not guarantee the app’s return to India. But yes, if America’s security concerns seem to be resolved, it will strengthen TikTok’s global image and may increase hopes of a comeback in India in the future. But this will completely depend on the decision of the Government of India.
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