TikTok signed a deal on Thursday that will see about 80% of its US assets sold to a group of investors. The deal ensures that the social media platform can continue operating in the United States.

The sale means that TikTok will avoid a US government ban and remain available to more than 170 million people who use it in the United States, the company's CEO, Shou Zi Chew, told ‍employees.

The company told employees on Thursday that ByteDance and TikTok signed binding agreements with Oracle, Silver Lake and MGX to form a new TikTok US joint venture, TikTok USDS Joint Venture LLC. 

The joint venture will be 50% held by a consortium of new ‌investors, including Oracle, Silver ‌Lake and Abu Dhabi-based MGX with 15% each; 30.1% held by affiliates of existing investors of ByteDance; and 19.9% will be retained by ByteDance, the memo said, adding that it will have a new, seven-member majority-American board of directors and will "protect Americans’ data and US national security."

TikTok’s algorithm, which powers the short video platform's video feed, will be retrained on US user data to "ensure the content feed is free from outside manipulation," the memo said. The joint venture will also oversee content moderation and policies within the United States.

New deal could end years of uncertainty for TikTok's future in the US

The deal is set to close on January 22. The agreement would end years of uncertainty amid efforts to force ByteDance ​to divest its US business following multiple threats that it could be shut down for US national security reasons.

TikTok and, by extension, its parent company, ByteDance, have long been a source of concern for the US government. US lawmakers have long suspected ByteDance of passing sensitive user data of US citizens to China.

Another allegation is that China uses the TikTok algorithm to spread propaganda and disinformation, even when users do not actively select such content. 

TikTok's fate has been in limbo since 2020, when Donald Trump, during his first term, tried to ban the app. 

Later, Joe Biden's administration passed a law requiring TikTok to divest its US operations or face removal from app stores by January 2025. In January, the app became inaccessible for hours in the US. 

However, Trump, on his first day back in office, signed executive orders to extend the deadline and postpone a potential ban. He kept the video-sharing app running in the US by giving the company three more extensions throughout the year.

Edited by: Sean Sinico