After years filled with threats, extensions of deadlines, and geopolitical strains, TikTok’s extended saga in the U.S. may be reaching its conclusion. According to an internal memo first highlighted by Axios and subsequently confirmed by CNN on Dec. 18, TikTok has consented to divest its operations in the U.S. to a joint venture overseen by American stakeholders.

The agreement, outlined in a memo from TikTok CEO Shou Chew, is expected to finalize on Jan. 22, representing a pivotal move toward resolving the enduring conflict regarding the app’s ownership and national security concerns. Although still pending completion, the deal would assist TikTok in adhering to a U.S. statute mandating its Chinese parent organization, ByteDance, to sell the app’s American division or risk a prohibition from U.S. app marketplaces.

As part of the arrangement, the U.S. entity, identified as “TikTok USDS Joint Venture LLC,” will be jointly owned by American investors and ByteDance. Oracle, Silver Lake, and Abu Dhabi’s MGX will collectively possess a 45 percent share. Affiliates of current ByteDance investors will hold close to one-third, while ByteDance will keep just under 20 percent.

Per the memo reported by Axios, the joint venture is tasked with overseeing U.S. data security, algorithm integrity, content moderation, and software reliability. The content recommendation algorithm will be restructured using U.S. user data to ensure that the platform’s feed remains “unaffected by external influences.”

This announcement occurs amidst delays in implementing the Protecting Americans from Foreign Adversary Controlled Applications Act of 2024, which mandated the sale of TikTok’s U.S. operations by Jan. 20, 2025. While the Supreme Court upheld the law, President Donald Trump has repeatedly delayed its enforcement via executive orders.

The latest extension shifts the deadline to Jan. 23, granting TikTok additional time to fulfill the divestiture. Trump mentioned in a September executive order that a proposal for a “qualified divestiture” of TikTok’s U.S. operations had been submitted, warranting another 120-day postponement.

Discussions have been riddled with unpredictability and international tension, with China’s government opposed to a compelled divestment and signaling potential obstructions to any agreement. Nevertheless, Axios has reported that the White House and Chinese representatives reached a preliminary accord in September for a U.S.-controlled joint venture led by investors like Andreessen Horowitz, Silver Lake, and Oracle.

This development would bring to an end a saga that commenced in 2020 when Trump first declared an executive order pressuring ByteDance to divest TikTok’s U.S. business due to national security apprehensions.