Kevin O’Leary, chairman of O’Leary Ventures, explains what President Donald Trump’s TikTok deal means for the economy and shares his thoughts on the looming government shutdown on “The Bottom Line.”
TikTok has moved Chief Executive Officer Hsu Chu told employees on Thursday that the company had signed a deal to sell its U.S. division to a group of U.S.-led investors, ending a year-long political and legal battle, with the deal expected to close in January, according to reports.
Axios reports The deal ends a years-long saga that forced TikTok’s parent company, China-based ByteDance, to sell its U.S. operations to American investors, ultimately resolving national security concerns.
The paper noted that Chu’s internal memo indicates the deal is scheduled to close on January 22, 2026.
Once signed, Oracle, Silver Lake and Abu Dhabi-based MGX will jointly own 45% of TikTok’s operations in the United States.
President Trump signs executive order allowing TikTok deal to proceed
TikTok has reportedly signed a deal to sell its US division to a group of US-led investors. (Aaron P/Bauer Griffin/GC Images/Getty Images)
FOX Business has reached out to TikTok for comment.
president donald trump signed an executive order in September allowing TikTok to separate its U.S. operations from ByteDance, the social media app’s owner based in China.
The deal sets in motion the separation of TikTok’s U.S. operations from ByteDance to comply with laws that ban social media platforms under the control of hostile foreign governments, such as China.
TikTok Inc. CEO Shou Zi Chew spoke at the Asia-Pacific Economic Cooperation CEO Summit in Lima, Peru. (Manuel Orbegoso/Bloomberg via Getty Images)
“I have a lot of respect for President Xi,” Trump said at the time, adding that he was “very grateful that President Xi approved the deal because we really needed China’s support, China’s approval, to properly execute the agreement.”
The president said, “The administration is going to announce a lot of different things, but I think the United States is going to have a great outcome, and I think China is going to have a great outcome because they’re going to get a very important legacy. And they have a lot of other agreements, you know, they have agreements with us, they have agreements in this country. And I want them to be treated fairly as well.”
The White House had previously indicated that Oracle and Silver Lake would be among the major owners of TikTok US, but earlier this week White House officials said ByteDance would own less than 20% of the company, with existing shareholders and global companies accounting for the remaining ownership. According to the report, ByteDance investors will own a 35% stake.
From ban to acceptance: Trump’s evolution on TikTok and what’s next
President Donald Trump signed an executive order in September allowing TikTok to separate its U.S. operations from ByteDance, the social media app’s owner based in China. (Getty Images)
Last year, Congress enacted legislation that the president signed into law. joe biden It banned TikTok and other apps controlled by foreign adversaries amid national security concerns about data security and the platform’s use of algorithms for foreign influence operations.
The Protecting Americans from Foreign Adversary Control Applications Act (PAFACA) requires apps like TikTok to be restricted in the United States unless they are stripped of ownership and subject to control by a hostile foreign government. Communist Party of China.
After the law survived, supreme court The challenge became effective on January 19, 2025, with a 90-day extension granted.
ByteDance initially refused to sell TikTok and ordered an initial 75-day delay in implementing the law after President Trump took office.
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That was followed by another 75-day extension in April and a 90-day extension in June, which was set to expire earlier this month.
FOX Business’ Eric Revell and Sophia Compton contributed to this report.
