TikTok has officially reached a deal to transfer a significant portion of its U.S. operations to a group of American investors, marking the end of a lengthy battle with the federal government. The agreement, described as a “new TikTok U.S. joint venture,” was outlined in an internal memo from ByteDance CEO Shou Chew.
Under this new partnership, major American investors such as Oracle, Silverlake, and MGX will take control of the U.S.-based business, collectively owning 45% of the operation. ByteDance will retain a nearly 20% share, with the newly formed entity named “TikTok USDS Joint Venture LLC” overseeing the app’s operations. This joint venture will be responsible for data protection, algorithm security, content moderation, and software assurance, with Oracle serving as the trusted security partner to ensure compliance with National Security Terms.
The deal is set to close on January 22, 2026, as reported by Axios. The terms of the agreement align closely with an executive order signed by President Trump in September, which authorized the sale of TikTok’s U.S. operations to an American investor group. The U.S. government’s efforts to separate TikTok’s U.S. business from its Chinese parent company have been driven by national security concerns.
This development comes after months of speculation and negotiations surrounding the future of TikTok in the United States. By partnering with American investors and establishing a new entity to oversee its U.S. operations, TikTok aims to ensure compliance with U.S. law and maintain accessibility for American users. The involvement of trusted security partners underscores the platform’s commitment to safeguarding user data and upholding national security standards.
As TikTok transitions to this new phase of ownership and management, the focus remains on delivering a safe and engaging experience for users while addressing regulatory concerns. The collaboration between ByteDance and American investors represents a significant step towards resolving the longstanding dispute over TikTok’s U.S. operations, paving the way for a more secure and sustainable future for the popular social media platform.
