TikTok has reached a major agreement to transfer significant control of its US operations to a group of American investors, ending years of political and regulatory pressure tied to national security concerns.
ByteDance confirmed the development in an internal memo from TikTok CEO Shou Chew, describing the move as the creation of a new “TikTok U.S. joint venture.” The deal represents a fundamental shift in how TikTok’s American business will be owned and governed.
Under the arrangement, a consortium of US-based investors will assume substantial control of TikTok’s operations in the United States. The group includes Oracle, private equity firm Silver Lake, and Abu Dhabi–based AI investment company MGX. Collectively, the investors will hold a 45 percent stake in TikTok’s US business, while ByteDance will retain just under 20 percent ownership, according to the memo reviewed by TechCrunch.
The newly established entity will operate under the name TikTok USDS Joint Venture LLC. It will be responsible for key functions such as data security, algorithm oversight, content moderation, and software integrity. The structure is designed to address longstanding US government concerns about user data and potential foreign influence.
As part of the agreement, a trusted security partner will be appointed to audit and verify compliance with US national security standards. Oracle is expected to take on this role once the transaction is finalized. The deal is scheduled to close on January 22, 2026, and was first reported by Axios.
The framework closely follows language from an executive order signed by President Donald Trump in September, which approved the sale of TikTok’s US operations to an American investor group. Earlier reports from CNBC had also identified Oracle, Silver Lake, and MGX as the leading investors.
US officials have repeatedly pushed for TikTok’s American business to be separated from its Chinese parent company, citing concerns over data protection and influence. Until now, ByteDance had said only that it would comply with US law to keep the platform available to American users. This agreement appears to resolve those concerns while allowing TikTok to continue operating in the United States.
