TikTok agrees to deal to cede control of U.S. business to American investor group | TechCrunch

"TikTok has reached a deal to cede a substantial portion of its U.S. operation to a group of American investors, thus ending a years-long tussle in which the federal government has sought to force the platform to do just that. The new partnership is described as a "new TikTok U.S. joint venture" in an internal memo from ByteDance CEO Shou Chew, which was viewed by TechCrunch. That arrangement will see major American investors take over significant control of the U.S.-based business."

"The newly formed investor group includes cloud giant Oracle, the tech-focused private equity firm Silverlake, and MGX, an Abu Dhabi-based investment firm focused on AI. Together, those companies will own 45 percent of the U.S. operation, while ByteDance retains a nearly 20 percent share, the memo states. The new entity formed by this partnership has been dubbed "TikTok USDS Joint Venture LLC.""

"That new entity will be responsible for overseeing the app, including data protection, algorithm security, content moderation, and software assurance, the memo states. "A trusted security partner will be responsible for auditing and validating compliance with the agreed upon National Security Terms, and Oracle will be the trusted security partner upon completion of the transaction," the document says. The closing date for the deal is listed as January 22nd, 2026. The news was originally reported by Axios."

TikTok will transfer a substantial portion of its U.S. operations to an investor group led by Oracle, Silverlake, and MGX. The investor group will own 45 percent of the U.S. business while ByteDance will retain nearly 20 percent. The new entity will be named TikTok USDS Joint Venture LLC and will oversee data protection, algorithm security, content moderation, and software assurance. Oracle will serve as the trusted security partner responsible for auditing and validating compliance with agreed National Security Terms. The transaction closing date is listed as January 22, 2026, and aligns with prior executive order language approving a U.S. sale.

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