TikTok has finalized an agreement to transfer a significant portion of its U.S. operations to a consortium of American investors, marking the resolution of a prolonged dispute with the federal government over the platform’s ownership.
The latest collaboration is referred to as a “new TikTok U.S. joint venture” in an internal communication from ByteDance CEO Shou Chew, as seen by TechCrunch.
Under this arrangement, prominent American investors will assume substantial control of the U.S.-based business. The newly established investor group comprises tech giant Oracle, tech-focused private equity firm Silverlake, and MGX, an Abu Dhabi-based investment firm specializing in AI. Together, these entities will hold a 45% stake in the U.S. operation, with ByteDance retaining close to 20%, as per the memo. This partnership has given rise to the formation of “TikTok USDS Joint Venture LLC.”
The newly formed entity will be tasked with overseeing various aspects of the app, including data protection, algorithm security, content moderation, and software assurance, according to the memo. The document specifies that a trusted security partner will be responsible for auditing and ensuring compliance with the agreed National Security Terms, with Oracle assuming this role post-transaction completion.
The deal is set to be finalized by January 22, 2026, as reported by Axios. The terms outlined in the memo closely mirror those in an executive order signed by President Trump in September, which authorized the sale of TikTok’s U.S. operations to an American investor group. Previous reports from CNBC had hinted at Oracle, Silverlake, and MGX as the primary investors in the deal, although ByteDance had not provided specifics until now.
The U.S. government’s persistent efforts to separate TikTok’s U.S. arm from its Chinese parent company have been driven by national security concerns, as highlighted in an executive order.
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