New York: TikTok has taken a major step toward securing its future in the United States after reaching an agreement to transfer control of its US business to an American led investor consortium, according to reports confirmed by sources familiar with the deal.
The agreement follows years of pressure from US lawmakers and regulators who raised national security concerns over the app’s Chinese ownership. The deal is expected to prevent a nationwide ban and allow the popular video sharing platform to continue operating for its more than 170 million American users.
Under the plan, a new US based entity will be created to run TikTok’s American operations. The investor group includes technology firm Oracle and private equity firm Silver Lake, along with other financial backers. Together, the American investors will hold a controlling stake in the new company.
TikTok’s parent company ByteDance will retain a minority ownership, while some existing non Chinese investors will also keep smaller stakes. This ownership structure is designed to meet US legal requirements that restrict foreign control of applications seen as sensitive to national security.
People familiar with the deal said the new US entity will be responsible for data security, content moderation and oversight of key operations in the country. User data of Americans will be stored and managed within the United States, addressing long standing concerns raised by policymakers.
The agreement comes after US legislation required TikTok to either sell its American business or face a ban. Earlier this year, the app briefly went offline in the United States amid legal uncertainty, highlighting the urgency of a resolution.
If all regulatory approvals are secured, the transaction is expected to be completed by late January 2026. Once finalised, TikTok will continue operating in the US under American majority ownership, bringing an end to a prolonged political and legal standoff over the future of one of the world’s most influential social media platforms.