TikTok Advances with Spin-Off of Its U.S. Operations
O’Leary Ventures Chairman Kevin O’Leary explains what President Donald Trump’s TikTok deal means for the economy and gives his take on the looming government shutdown on ‘The Bottom Line.’
On Thursday, the U.S. and China reached an agreement on a TikTok US spin-off deal. This arrangement allows the popular short-form video app to continue its operations in the United States while addressing concerns surrounding its Chinese parent company, ByteDance. A White House official confirmed the details to FOX Business.
The new TikTok U.S. joint venture features a predominantly American investor group led by Oracle and Silver Lake. This initiative was first announced last month when TikTok CEO Shou Chew informed employees through an internal memo that the company had signed agreements to establish this new entity.
In his memo, Chew emphasized that the new structure aims to alleviate U.S. lawmakers’ worries regarding the Chinese government’s potential influence over ByteDance. There are concerns that this influence could be leveraged for propaganda purposes or to access the data of TikTok’s 170 million American users.
According to the terms of the agreement, ByteDance will retain a nearly 20% stake in the new U.S. entity. Meanwhile, Oracle, Silver Lake, and MGX will each hold 15% stakes in the venture.
TRUMP SIGNS EXECUTIVE ORDER ALLOWING TIKTOK DEAL TO PROCEED
Tech companies booths at the BRIDGE Summit 2025 at Abu Dhabi National Exhibition Centre ADNEC in Abu Dhabi, United Arab Emirates, on Dec. 10, 2025. (Nicolas Economou/NurPhoto via Getty Images / Getty Images)
The deal’s closing date is set for January 22, following President Donald Trump’s executive order signed in September. This order provided a 120-day delay in enforcing a 2024 law signed by then-President Joe Biden, which mandated ByteDance to divest TikTok’s U.S. business or face a ban.
The bipartisan legislation, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, prohibits social media apps linked to adversarial foreign governments, such as China, from being available in U.S. app stores. This law survived a Supreme Court challenge and took effect in January 2025, although Trump signed multiple extensions to delay its implementation while pursuing a deal.
FROM BAN TO EMBRACE: TRUMP’S EVOLUTION ON TIKTOK AND WHAT COMES NEXT
During an event marking Trump’s executive order in September, Vice President JD Vance stated that TikTok’s U.S. business would be valued at approximately $14 billion in the deal. He emphasized that “the most important thing is that it does protect Americans’ data security and ensures TikTok is still accessible.”
Vance further noted that the agreement guarantees “that the American entity and American investors will actually control the algorithm,” thereby preventing its use for disseminating foreign government propaganda.
O’Leary Ventures Chairman Kevin O’Leary explains what President Donald Trump’s TikTok deal means for the economy and gives his take on the looming government shutdown on ‘The Bottom Line.’
On Thursday, the U.S. and China reached an agreement on a TikTok US spin-off deal. This arrangement allows the popular short-form video app to continue its operations in the United States while addressing concerns surrounding its Chinese parent company, ByteDance. A White House official confirmed the details to FOX Business.
The new TikTok U.S. joint venture features a predominantly American investor group led by Oracle and Silver Lake. This initiative was first announced last month when TikTok CEO Shou Chew informed employees through an internal memo that the company had signed agreements to establish this new entity.
In his memo, Chew emphasized that the new structure aims to alleviate U.S. lawmakers’ worries regarding the Chinese government’s potential influence over ByteDance. There are concerns that this influence could be leveraged for propaganda purposes or to access the data of TikTok’s 170 million American users.
According to the terms of the agreement, ByteDance will retain a nearly 20% stake in the new U.S. entity. Meanwhile, Oracle, Silver Lake, and MGX will each hold 15% stakes in the venture.
TRUMP SIGNS EXECUTIVE ORDER ALLOWING TIKTOK DEAL TO PROCEED
Tech companies booths at the BRIDGE Summit 2025 at Abu Dhabi National Exhibition Centre ADNEC in Abu Dhabi, United Arab Emirates, on Dec. 10, 2025. (Nicolas Economou/NurPhoto via Getty Images / Getty Images)
The deal’s closing date is set for January 22, following President Donald Trump’s executive order signed in September. This order provided a 120-day delay in enforcing a 2024 law signed by then-President Joe Biden, which mandated ByteDance to divest TikTok’s U.S. business or face a ban.
The bipartisan legislation, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, prohibits social media apps linked to adversarial foreign governments, such as China, from being available in U.S. app stores. This law survived a Supreme Court challenge and took effect in January 2025, although Trump signed multiple extensions to delay its implementation while pursuing a deal.
FROM BAN TO EMBRACE: TRUMP’S EVOLUTION ON TIKTOK AND WHAT COMES NEXT
During an event marking Trump’s executive order in September, Vice President JD Vance stated that TikTok’s U.S. business would be valued at approximately $14 billion in the deal. He emphasized that “the most important thing is that it does protect Americans’ data security and ensures TikTok is still accessible.”
Vance further noted that the agreement guarantees “that the American entity and American investors will actually control the algorithm,” thereby preventing its use for disseminating foreign government propaganda.
