Washington, Dec 19 (V7N) – After prolonged negotiations, TikTok’s Chinese parent company ByteDance has sold nearly 80 percent of its shares, significantly reducing its ownership in the popular video-sharing platform to 19 percent. The move aims to avert potential sanctions and regulatory action in the United States.

According to sources familiar with the agreement, ByteDance has signed a deal with US and international investors, under which the remaining shares will be held by three companies along with ByteDance’s existing investors. The agreement paves the way for the formation of a new joint venture to oversee TikTok’s US operations.

The deal is scheduled to come into effect on January 20.

Background to the Deal

TikTok faced intense scrutiny and legal challenges in the United States during the administration of former President Joe Biden, when the platform was temporarily banned over national security concerns. The US government argued that TikTok’s Chinese ownership posed risks related to data privacy and foreign influence.

However, after returning to office, President Donald Trump adopted a more flexible stance toward the app. While lifting the ban, his administration imposed strict conditions, including a deadline for ByteDance to divest the majority of its TikTok ownership.

In September last year, President Trump postponed the enforcement of the TikTok ban law until January 20, instructing ByteDance to sell its shares within that timeframe. The deadline was extended multiple times to allow negotiations to reach a conclusion.

Key Terms of the Agreement

Under the finalized agreement:

  • ByteDance’s ownership will be reduced to 19 percent

  • TikTok’s US business will operate under a new joint venture

  • TikTok’s recommendation algorithm will be retrained using US user data

  • Measures will be taken to ensure that no foreign interference affects the platform’s operations in the United States

US officials have stated that these steps are intended to safeguard national security while allowing TikTok to continue operating in the country.

Looking Ahead

The ownership restructuring marks a major turning point for TikTok, potentially stabilizing its future in the US market after years of uncertainty. Analysts believe the deal could also influence how other foreign-owned tech platforms navigate regulatory challenges in Western countries.

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