WASHINGTON (Diya TV) — China has signed off on a long-awaited deal to sell TikTok’s U.S. business to a group of mostly American investors, clearing the final hurdle in a yearslong political and legal fight over the popular social media app. People familiar with the matter said the deal is expected to be announced and closed this week, ending a major flashpoint in U.S.-China relations.

The agreement allows TikTok’s U.S. operations to be spun off from its Chinese parent company, ByteDance. The buyer group is led by Oracle and private equity firm Silver Lake. The move aims to address U.S. national security concerns tied to data privacy and Chinese government influence.

The deal follows months of uncertainty and comes just days before a Jan. 22 deadline set by the Trump administration. That deadline stems from an executive order that paused enforcement of a federal ban on TikTok for 120 days. Lawmakers and U.S. officials have long argued that TikTok’s Chinese ownership posed risks to American users.

Under the new structure, ByteDance will retain just under a 20% stake in the U.S. business. Oracle, Silver Lake, and MGX, a state-owned investment firm from the United Arab Emirates focused on artificial intelligence, will each hold 15% stakes.

Other investors include Susquehanna, Dragoneer, DFO, and Michael Dell’s family office. The ownership breakdown ensures that American investors hold a clear majority of the company. That point proved critical for U.S. regulators.

TikTok CEO Shou Chew told employees in an internal memo last month that ByteDance had already signed a binding agreement with investors. At the time, he said regulators had not yet given formal approval and that more work remained. The deal’s closing suggests that those approvals are now in place.

One of the most sensitive topics in the TikTok negotiations involved the app’s recommendation algorithm. U.S. officials have long viewed the algorithm as the core of TikTok’s power and influence. Chinese regulators, meanwhile, have treated it as protected technology.

It remains unclear what concessions were made behind closed doors. The final agreement does not publicly detail whether the algorithm will transfer to the new U.S. entity or operate under strict safeguards.

Chew’s memo said the new independent company will control data protection, content moderation, and algorithm security. A new seven-member board will govern the entity, with a majority of American directors. That structure aims to reassure U.S. officials and users alike.

The TikTok sale caps a saga that began during Trump’s first term, when he sought to ban the app outright. The effort stalled in court but set the stage for later action. In 2024, then-President Joe Biden signed a law requiring ByteDance to divest TikTok’s U.S. business or face a nationwide ban.

Supporters of the law argued that TikTok could allow the Chinese government to access U.S. user data or influence public opinion. TikTok has repeatedly denied those claims and said it has never shared U.S. data with Chinese authorities. Still, bipartisan pressure in Washington kept the issue alive. The deal now appears to resolve that standoff, at least for the U.S. market.

The final sale price has not been disclosed.  Vice President JD Vance said in September that the deal could value TikTok’s U.S. business at about $14 billion. ByteDance has not confirmed that figure.

The Treasury Department, the White House, Oracle, and Silver Lake did not immediately respond to requests for comment. A spokesperson for the Chinese embassy in Washington said China’s position on TikTok “has been consistent and clear” and added that there was nothing new to share.

For TikTok’s more than 150 million U.S. users, the deal likely means continued access to the app with few visible changes. The company has said the transition will not disrupt daily use.