TikTok Finalizes Agreements for New US Joint Venture Following Prolonged Dispute
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.’
TikTok has taken significant steps to resolve a prolonged political and legal struggle. On Thursday, CEO Shou Chew informed staff that the company has finalized agreements to establish a new U.S. joint venture with American-led investors. This transaction is expected to close on January 22, 2026.
In an internal memo shared with FOX Business, Chew emphasized that this new venture will enable TikTok to continue serving its vast user base of over 170 million in the U.S., while remaining part of a global community. He expressed gratitude to employees for their dedication and reiterated the company’s commitment to supporting users, creators, and businesses as the transition unfolds.
Chew assured staff that further updates will be provided as they approach the scheduled closing date of January 22, 2026.
TRUMP SIGNS EXECUTIVE ORDER ALLOWING TIKTOK DEAL TO PROCEED
TikTok reportedly signed a deal to sell its U.S. unit to an American-led investor group. (AaronP/Bauer-Griffin/GC Images / Getty Images)
In September, President Donald Trump signed an executive order facilitating the transfer of TikTok’s U.S. operations from its China-based parent company, ByteDance. This deal initiates the separation of TikTok’s U.S. operations to comply with legislation that prohibits social media platforms under the influence of foreign adversaries, particularly China.
Trump expressed his respect for President Xi and acknowledged the importance of China’s approval for the deal’s success. He stated, “We really needed the support of China, the approval of China.”
BESSENT SAYS US, CHINA HAVE ‘FRAMEWORK’ ON TIKTOK DEAL; TRUMP, XI TO TALK FRIDAY TO FINALIZE
Shou Zi Chew, CEO of TikTok Inc., speaks during the Asia-Pacific Economic Cooperation CEO Summit in Lima, Peru. (Manuel Orbegozo/Bloomberg via Getty Images)
The administration indicated that Oracle and Silver Lake would be key stakeholders in TikTok U.S. A White House official noted that ByteDance would retain less than 20% ownership, with existing shareholders and global firms holding the rest. Reports suggest ByteDance investors would maintain a 35% stake.
Last year, Congress passed legislation signed by President Joe Biden, which banned TikTok and similar apps controlled by foreign adversaries due to national security concerns regarding data privacy and potential foreign influence through algorithms.
FROM BAN TO EMBRACE: TRUMP’S EVOLUTION ON TIKTOK AND WHAT COMES NEXT
President Donald Trump in September signed an executive order that allows TikTok’s U.S. operations to be moved away from the social media app’s China-based owner ByteDance. (Getty Images)
The Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) mandates restrictions on apps like TikTok unless they are divested from foreign adversarial control, particularly from the Chinese Communist Party.
After surviving a Supreme Court challenge, this law took effect on January 19, 2025, with a 90-day extension allowed.
Initially, ByteDance resisted selling TikTok, and following President Trump’s inauguration, he issued a 75-day delay in enforcing the law. This was followed by another 75-day extension in April and a 90-day extension in June, which was set to expire earlier this month but has since been extended.
FOX Business’ Eric Revell and Sophia Compton contributed to this report.
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.’
TikTok has taken significant steps to resolve a prolonged political and legal struggle. On Thursday, CEO Shou Chew informed staff that the company has finalized agreements to establish a new U.S. joint venture with American-led investors. This transaction is expected to close on January 22, 2026.
In an internal memo shared with FOX Business, Chew emphasized that this new venture will enable TikTok to continue serving its vast user base of over 170 million in the U.S., while remaining part of a global community. He expressed gratitude to employees for their dedication and reiterated the company’s commitment to supporting users, creators, and businesses as the transition unfolds.
Chew assured staff that further updates will be provided as they approach the scheduled closing date of January 22, 2026.
TRUMP SIGNS EXECUTIVE ORDER ALLOWING TIKTOK DEAL TO PROCEED
TikTok reportedly signed a deal to sell its U.S. unit to an American-led investor group. (AaronP/Bauer-Griffin/GC Images / Getty Images)
In September, President Donald Trump signed an executive order facilitating the transfer of TikTok’s U.S. operations from its China-based parent company, ByteDance. This deal initiates the separation of TikTok’s U.S. operations to comply with legislation that prohibits social media platforms under the influence of foreign adversaries, particularly China.
Trump expressed his respect for President Xi and acknowledged the importance of China’s approval for the deal’s success. He stated, “We really needed the support of China, the approval of China.”
BESSENT SAYS US, CHINA HAVE ‘FRAMEWORK’ ON TIKTOK DEAL; TRUMP, XI TO TALK FRIDAY TO FINALIZE
Shou Zi Chew, CEO of TikTok Inc., speaks during the Asia-Pacific Economic Cooperation CEO Summit in Lima, Peru. (Manuel Orbegozo/Bloomberg via Getty Images)
The administration indicated that Oracle and Silver Lake would be key stakeholders in TikTok U.S. A White House official noted that ByteDance would retain less than 20% ownership, with existing shareholders and global firms holding the rest. Reports suggest ByteDance investors would maintain a 35% stake.
Last year, Congress passed legislation signed by President Joe Biden, which banned TikTok and similar apps controlled by foreign adversaries due to national security concerns regarding data privacy and potential foreign influence through algorithms.
FROM BAN TO EMBRACE: TRUMP’S EVOLUTION ON TIKTOK AND WHAT COMES NEXT
President Donald Trump in September signed an executive order that allows TikTok’s U.S. operations to be moved away from the social media app’s China-based owner ByteDance. (Getty Images)
The Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) mandates restrictions on apps like TikTok unless they are divested from foreign adversarial control, particularly from the Chinese Communist Party.
After surviving a Supreme Court challenge, this law took effect on January 19, 2025, with a 90-day extension allowed.
Initially, ByteDance resisted selling TikTok, and following President Trump’s inauguration, he issued a 75-day delay in enforcing the law. This was followed by another 75-day extension in April and a 90-day extension in June, which was set to expire earlier this month but has since been extended.
FOX Business’ Eric Revell and Sophia Compton contributed to this report.
