O’Leary Ventures Chairman Kevin O’Leary explains what President Donald Trump’s TikTok deal means for the economy and gives his take on the upcoming government shutdown in ‘The Bottom Line.’
TikTok decided to end the political and legal battle on Thursday as CEO Shou Chew told employees that the company had signed an agreement to sell its US division to a US-led investor group, with the transaction set to close in January, according to reports.
Axios reported that the deal ends a years-long saga of forcing TikTok’s parent company, China’s ByteDance, to sell its US operations to US investors, finally addressing concerns about national security.
The publication noted that an internal memo from Chew indicates that the deal is scheduled to close on Jan. 22, 2026.
Once signed, Oracle, Silver Lake and Abu Dhabi-based MGX will own 45% of TikTok’s US operations.
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TikTok has reportedly signed an agreement to sell its US unit to an American-led investor group. (Photos by AaronP/Bauer-Griffin/GC/Getty Images)
FOX Business has reached out to TikTok for comment.
President Donald Trump in September signed an executive order allowing TikTok’s US operations to be spun off from the social media app’s China-based owner, ByteDance.
The agreement marked the beginning of the separation of TikTok’s US operations from ByteDance to comply with legislation that prohibits social media platforms controlled by rival foreign governments such as China.
BESSENT SAYS US, CHINA ‘FRAME’ ON TIKTOK DEAL; TRUMP, XI TO SPEAK ON FRIDAY TO FINISH
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)
Trump said at the time that he had “a lot of respect for President Xi” and added that he was “very grateful that he approved the deal because, in order for it to be done properly, we really need China’s support, China’s approval.”
The president said the administration “will be announcing different things, but the US is coming out well, and I think China is coming out well because it can have a very important legacy. And they have a lot of other agreements, you know, they have agreements with us, and they have agreements in this country. And they want to be treated fairly as well.”
The White House previously revealed that Oracle and Silver Lake will be among the major owners of TikTok US Earlier this week, a White House official said that ByteDance would own less than 20% of the company, while existing shareholders and international firms would account for the remainder of the company’s ownership. ByteDance investors will have a 35% stake, according to the report.
FROM REFUSAL TO ACCEPTANCE: TRUMP’S AUTONOMY ON TIKTOK AND WHAT’S COMING
President Donald Trump in September signed an executive order allowing TikTok’s US operations to be based away from the social media app’s China-based owner ByteDance. (Getty Images)
Last year, Congress enacted a law signed by President Joe Biden that banned TikTok and other applications controlled by foreign adversaries amid national security concerns about data security and the use of the platform’s algorithms in foreign influence operations.
The Protecting Americans from Applications Controlled by Foreign Enemies Act (PAFACA) requires apps like TikTok to be restricted from the US unless they are taken out of ownership controlled by rival foreign governments, such as the Chinese Communist Party.
After the law survived a Supreme Court challenge, it went into effect on Jan. 19, 2025, although he granted a 90-day extension.
ByteDance initially refused to sell TikTok, and after President Trump took office, he issued an initial 75-day delay in implementing 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 being extended.
FOX Business’ Eric Revell and Sophia Compton contributed to this report.
