TikTok has signed a joint venture agreement with major investors to keep its platform running in the United States and avoid a potential ban linked to its Chinese ownership, according to an internal memo seen by news agency AFP.TikTok chief executive Shou Zi Chew told employees that the company and its parent ByteDance have agreed to form a new US-based entity, backed by Oracle, private equity firm Silver Lake and Abu Dhabi-based investor MGX. The deal is aimed at meeting the requirements of a 2024 US law that mandates the sale of TikTok’s American operations or a shutdown of the app.Under the arrangement, American and global investors will hold just over 80 per cent of the new joint venture, while ByteDance will retain a 19.9 per cent stake — the maximum ownership allowed for a Chinese company under the law, reported Reuters. Oracle, Silver Lake and MGX will each own 15 per cent, while affiliates of existing ByteDance investors will hold around 30 per cent.Chew said the US joint venture would operate as an independent entity with authority over “US data protection, algorithm security, content moderation and software assurance”. He added that the venture would have “the exclusive right and authority to provide assurances that content, software and data for American users is secure”, as per AFP.Oracle will serve as TikTok’s “trusted security partner”, responsible for auditing compliance and safeguarding sensitive US user data, which will be stored on Oracle’s cloud infrastructure in the United States, Reuters reported. The new entity will also oversee certain commercial operations, including advertising, marketing and e-commerce, while TikTok’s US entities will manage global product interoperability.The agreement is set to close on January 22, 2026, though Chew told staff that more work remains before completion. The memo marks the first confirmation that TikTok has formally signed on to a deal framework unveiled by the White House in September, AFP noted.The move follows years of pressure from US lawmakers, who have argued that TikTok could be used by Beijing to access Americans’ data or influence public opinion through its algorithm. US President Donald Trump, who initially pushed for a ban during his first term, repeatedly delayed enforcement of the law through executive orders since his return to the White House. He has credited TikTok, which has over 170 million US users, with helping him win re-election.Trump has publicly backed the new arrangement, previously naming Oracle founder Larry Ellison — a longtime ally — as a key figure in the deal. Ellison has recently re-emerged in the spotlight through major media and technology investments, AFP reported.The deal has drawn criticism from some US politicians. Democratic Senator Elizabeth Warren said there were still unanswered questions, accusing Trump of allowing a “billionaire takeover” of TikTok, as reported by Reuters.Despite the concerns, analysts quoted by Reuters said the agreement is likely to clear regulatory hurdles, given the level of involvement by the White House in shaping the transaction.