On Thursday, TikTok parent company ByteDance announced to its staff that it had signed an agreement to sell a portion of TikTok — known as United States Data Services — to a group of mostly U.S.-based investors.

The deal, which is projected to close by January 22, 2026, is the result of more than six years of negotiation between ByteDance and the U.S. government. It is an attempt to resolve persistent U.S. government fears that the Chinese government, through ByteDance, might collect private personal information about Americans or subtly change the mix of news and information they consume. And it appears to contain portions of a draft agreement that ByteDance pitched to the Biden Administration in 2022 (the Biden Administration rejected the deal, saying it was too weak), but also contains new provisions, including a licensing agreement that allows ByteDance to keep control of TikTok’s signature algorithm — and reportedly to retain roughly half the profits that it makes for the investor group.

For Trump, the deal delivers a titan of U.S. news and media consumption to a group of investors who have supported his political efforts. For celebrities, businesses, and TikTok staffers that rely on the company for their livelihoods, the deal offers some certainty about the app’s future. Investors may see limited financial benefit, but ByteDance itself — which is set to retain net roughly half of TikTok’s future U.S. profits — has much to celebrate.

In China, the deal has been

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