TikTok has signed binding agreements to sell its U.S. operations to an American investor consortium led by Oracle, Silver Lake, and Abu Dhabi-based MGX, with the deal expected to close on January 22, 2026, according to CEO Shou Zi Chew's internal memo.
The new entity, named TikTok USDS Joint Venture LLC, will be 50 percent owned by the investor group (with Oracle, Silver Lake, and MGX each holding 15 percent), while ByteDance retains 19.9 percent and existing ByteDance investor affiliates hold approximately 30 percent.
Oracle will serve as the trusted security partner responsible for auditing compliance with national security terms, storing U.S. user data domestically, and continuously monitoring TikTok's algorithm, which will be retrained on American user data to ensure content feeds remain free from foreign manipulation.
The arrangement aims to resolve a yearslong standoff over national security concerns, though critics like former Treasury official Jim Secreto argue the structure resembles a franchise deal rather than the clean break from ByteDance that Congress intended, leaving concerns about covert data access unresolved.
The deal follows President Donald Trump's executive order in September approving the sale after multiple enforcement delays, and still requires final regulatory approval from the Chinese government before completion, though Trump has indicated President Xi Jinping supports the arrangement.
