lucadelladora – TikTok’s long-discussed plan to spin off its US business has moved closer to completion, according to recent disclosures. The development follows an executive order signed by President Donald Trump in September. That order outlined preliminary terms for restructuring TikTok’s US operations.
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Three months later, TikTok executives indicate the agreement is nearing finalization. Bloomberg reported that TikTok CEO Shou Chew informed employees that key parties approved the deal. TikTok and its parent company ByteDance have reportedly signed off on the agreement.
The structure of the deal largely mirrors terms announced earlier in the year. A consortium of US investors will control a majority stake in the new entity. These investors reportedly include Oracle, Silver Lake, and MGX. ByteDance is expected to retain a minority ownership stake. This arrangement aims to address longstanding US government concerns. Officials have focused on data security and potential foreign influence.
Chew stated in an internal memo cited by Bloomberg that the transaction will close on January 22, 2026. As a result, the timeline indicates that regulators and the company will require several additional months for regulatory and operational preparation. So far, TikTok has not yet confirmed these details publicly. Meanwhile, Chew explained that the new US joint venture will build on TikTok’s existing US Data Security organization. Once the deal closes, the entity will operate independently and take authority over several core operational areas.
These responsibilities include US user data protection and algorithm security. The joint venture will also oversee content moderation and software assurance. Chew described these measures as central to ensuring operational independence. TikTok did not immediately respond to requests for public comment regarding the report. The company has previously emphasized its commitment to transparency and compliance. However, formal confirmation remains pending.
Chinese Government Position Remains Unclear as January 2026 Deadline Approaches
Despite progress on the US side, uncertainty remains regarding China’s position on the deal. President Trump stated in September that Chinese officials were fully supportive. Subsequent diplomatic exchanges have offered limited clarity.
Meetings between US and Chinese representatives have produced cautious public statements. In October, China’s Commerce Ministry addressed the issue directly. The ministry said it would work with the United States to resolve TikTok-related concerns. The statement did not explicitly endorse or reject the proposed structure. Observers note that regulatory approval from China remains a critical factor. ByteDance is headquartered in China and subject to Chinese export regulations.
If finalized as planned, the agreement would mark a significant milestone. It would come nearly one year after Trump’s initial executive order delaying enforcement of a sale or ban law. That law targeted TikTok’s continued US operations. The original legislation required ByteDance to divest TikTok’s US business or face prohibition. Trump has since approved several extensions delaying enforcement. These extensions were intended to allow negotiations to proceed.
Chew wrote in an internal memo cited by Bloomberg that the transaction will close on January 22, 2026. The projected timeline indicates that regulators and operators will need several additional months to prepare. TikTok has not yet confirmed these details publicly. Chew explained that the new US joint venture will build on TikTok’s existing US Data Security organization. Once the deal closes, the entity will operate independently and exercise authority over several core operational areas.
For regulators, the agreement aims to establish stronger safeguards. Independent governance is intended to limit foreign access to sensitive data. Algorithm oversight has also been a central concern. As negotiations near their conclusion, attention will remain on regulatory approvals. The final outcome will depend on cooperation from both governments. The coming weeks are expected to clarify TikTok’s long-term future in the United States.
