ByteDance Ltd. is on track for profits of roughly $50 billion in 2025, capping a record year for a Chinese social media leader making major inroads into e-commerce and new markets.

The deal comes more than a year after Congress passed a law that forced its owner ByteDance to divest its US operations or face a ban.

In a memo to staff reviewed by Reuters, TikTok CEO Shou Zi Chew confirmed that all US data “will be stored in a trusted and secure cloud environment in the United States run by Oracle,” with Oracle ultimately responsible for safeguarding US data.

A new U.S.-based joint venture would keep TikTok online while handing oversight of its algorithm and data security to some of America’s wealthiest investors.

BYTEDANCE is on track for profits of roughly US$50 billion in 2025, capping a record year for a Chinese social media leader making major inroads into e-commerce and new markets.

Going forward, nearly half of the new entity, TikTok USDS Joint Venture LLC, will be controlled by investors including Oracle, Silver Lake and MGX. Current ByteDance investor affiliates will own around 30 percent, and ByteDance itself will control just under 20 percent.

(THE CONVERSATION) Chinese tech giant ByteDance has signed an agreement to sell a majority stake in its video platform TikTok to a group of U.S. investors. President Donald Trump announced a preliminary agreement for the sale on Sept. 19, 2025, following his negotiation with Chinese leader Xi Jinping.

A deal made to divest ByteDance's ownership of TikTok in the US has been confirmed. It's expected to be signed in late January.