TikTok has reached an agreement to transfer a significant portion of its U.S. operations to a group of American investors, concluding a lengthy dispute with the federal government.
The new partnership, referred to as a “new TikTok U.S. joint venture,” was detailed in an internal memo from ByteDance CEO Shou Chew. This arrangement will allow major American investors to gain substantial control over the U.S.-based business. The investor group includes Oracle, Silverlake, and MGX, an Abu Dhabi-based investment firm focused on artificial intelligence. Together, they will own 45% of the U.S. operation, while ByteDance will retain nearly 20%. The new entity is named “TikTok USDS Joint Venture LLC.”
This entity will oversee the app’s operations, including data protection, algorithm security, content moderation, and software assurance. A trusted security partner will be responsible for auditing compliance with national security terms, with Oracle designated as that partner upon completion of the transaction.
The deal is set to close on January 22, 2026. The arrangement mirrors language from an executive order signed by President Trump in September, which also approved the sale of TikTok’s U.S. operations to an American investor group. Until now, ByteDance had not disclosed specific details about the deal, only stating its commitment to comply with U.S. law to keep TikTok available to American users.
The U.S. government has long aimed to separate TikTok’s U.S. operations from its Chinese parent company, citing national security concerns as the reason.
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