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TikTok moved to end a yearslong political and legal battle on Thursday as CEO Shou Chew told staff the company signed agreements to form a new U.S. joint venture with American-led investors, with the transaction set to close Jan. 22, 2026.
In an internal memo provided to FOX Business, CEO Shou Chew told employees the company has signed agreements with investors to create a new TikTok U.S. joint venture. He said the move will allow the platform to continue serving its more than 170 million users in the U.S. as part of a global community.
Chew thanked employees for their work and said the company’s focus will remain on supporting users, creators and businesses as the transaction moves forward.
He said TikTok will provide additional updates as it works toward the scheduled closing date of Jan. 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)
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.
The deal set in motion the separation of TikTok’s U.S. operations from ByteDance to comply with a law that bans social media platforms subject to control by adversarial foreign governments like China.
Trump said at the time that he has "great respect for President Xi" and added that he "very much appreciated that he approved the deal because, to get it done properly, we really needed the support of China, the approval of China."
BESSENT SAYS US, CHINA HE '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 president said the administration will be "announcing different things, but the U.S. comes out great, and I think China comes out great because they can he a very important legacy. And they he many other deals, you know, they he deals with us, and they he deals in this country. And they want to be treated fairly also."
The White House previously indicated Oracle and Silver Lake would be among the main owners of TikTok U.S. A White House official said at the time that ByteDance would own less than 20% of the firm, while existing shareholders and global firms would account for the remainder of the company's ownership. ByteDance investors would hold a 35% stake, per the report.
Last year, Congress enacted a law signed by President Joe Biden that banned TikTok and other apps controlled by foreign adversaries amid national security concerns about data security and the use of platforms' algorithms for foreign influence operations.
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) requires that apps like TikTok be restricted in the U.S. unless they're divested from ownership subject to control by adversarial foreign governments, such as the Chinese Communist Party.
After the law survived a Supreme Court challenge, it took effect Jan. 19, 2025, though it allowed a 90-day extension.
ByteDance initially refused to sell TikTok, and after President Trump took office, he issued an initial 75-day delay in enforcing the law.
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That was followed by another 75-day extension in April and a 90-day extension in June that was due to expire earlier this month before it was extended.
FOX Business’ Eric Revell and Sophia Compton contributed to this report.