TikTok has reached a deal to cede a substantial portion of its U.S. operations to a group of American investors. This move ends a years-long dispute in which the federal government sought to force the platform to take this very action.
According to an internal memo from ByteDance CEO Shou Chew, the new partnership is described as a “new TikTok U.S. joint venture.” This arrangement will see major American investors take over significant control of the U.S.-based business. The investor group includes cloud giant Oracle, the tech-focused private equity firm Silverlake, and MGX, an Abu Dhabi-based investment firm focused on artificial intelligence. Together, these companies will own 45% of the U.S. operation, while ByteDance retains a nearly 20% share. The new entity formed by this partnership has been named “TikTok USDS Joint Venture LLC.”
This new entity will be responsible for overseeing the app, including data protection, algorithm security, content moderation, and software assurance. A trusted security partner will be responsible for auditing and validating compliance with agreed-upon national security terms. Oracle will serve as that trusted security partner once the transaction is complete.
The closing date for the deal is listed as January 22, 2026. Much of the deal, as described in the memo, parallels the language in an executive order signed by President Trump in September, which similarly approved the sale of TikTok’s U.S. operations to an American investor group. Until now, ByteDance had not divulged details of such a deal, only stating that it would abide by U.S. law to ensure TikTok remained available to U.S. users.
The U.S. government has long sought to separate TikTok’s U.S. business from its Chinese parent company, citing national security concerns as the rationale.