TikTok's parent company, ByteDance, has finalized a binding agreement with a consortium of US and global investors, securing the popular video-sharing app's future in the United States and ending years of intense political pressure. The deal, confirmed by TikTok CEO Shou Zi Chew in a memo to employees, is set to close on January 22.

This move resolves a high-stakes dispute over US national security concerns and brings stability to a platform that has become a global cultural and economic force. For Kenya, where TikTok boasts over 15.1 million adult users, the deal averts a potential crisis for thousands of content creators and small businesses who rely on the app for their livelihood.

A New Ownership Structure

The newly formed joint venture, named TikTok USDS Joint Venture LLC, will see a significant shift in ownership. According to the CEO's memo, the new structure is designed to place oversight firmly in American hands. Key stakeholders in the new entity include:

• Oracle: The US tech giant will hold a 15% stake.
• Silver Lake: The American private equity firm also takes a 15% share.
• MGX: The Abu Dhabi-based investment firm will own 15%.
• Existing ByteDance Investors: Affiliates of current investors will hold 30.1%.
• ByteDance: The original Chinese parent company will retain a 19.9% minority stake.

Under the agreement, all US user data will be stored locally in systems managed by Oracle, which will also review the app's code to ensure its algorithm is secure and free from outside manipulation. The new venture will be governed by a seven-member, majority-American board of directors.

Why This Matters for Kenya

While the political battle raged in Washington, Kenyan creators watched with apprehension. A US ban could have set a global precedent, threatening the vibrant digital ecosystem built on the platform. In early 2025, TikTok's ad reach in Kenya grew by a staggering 42.7%, reaching 55.3% of the country's internet users. The platform is no longer just for entertainment; it's a primary engine for social commerce and brand visibility.

The stability provided by this deal is a welcome relief. Kenyan entrepreneurs have leveraged the platform to build communities and drive sales in a digital marketplace that is rapidly outpacing traditional e-commerce. The Kenyan government itself has previously opted for regulation over an outright ban, recognizing the app's significant economic and cultural impact.

In his memo, Chew emphasized that the focus remains on the global community. "With these agreements in place, our focus must stay where it's always been—firmly on delivering for our users, creators, businesses and the global TikTok community," he noted.