TikTok has struck an agreement to hand over a significant stake in its U.S. business to a consortium of American investors, bringing to a close a prolonged standoff with the federal government, which has for years pushed for the platform’s U.S. operations to be separated from its Chinese parent.
Under the deal, the company will operate through a newly created entity described as a “TikTok U.S. joint venture,” according to an internal memo from ByteDance chief executive Shou Chew.
The structure gives a group of U.S.-based investors substantial control of the American business. The consortium includes Oracle, private equity firm Silver Lake, and Abu Dhabi-based AI investment firm MGX. Collectively, the group will hold 45% of the U.S. operation, while ByteDance will retain just under a 20% stake, the memo said. The new entity will operate under the name “TikTok USDS Joint Venture LLC.”
Responsibility for key areas of the app — including data security, algorithm oversight, content moderation, and software assurance — will sit with the new joint venture. The memo adds that a “trusted security partner” will audit and verify compliance with national security requirements, with Oracle set to assume that role once the transaction is completed.
The deal is scheduled to close on January 22, 2026. Axios first reported the agreement.
The terms outlined in the memo closely mirror those contained in an executive order signed by President Trump in September, which gave approval in principle for TikTok’s U.S. operations to be transferred to an American-led investor group. CNBC had previously reported that Oracle, Silver Lake, and MGX were expected to be the main backers, though ByteDance had not publicly confirmed details of the arrangement, stating only that it would comply with U.S. law to keep TikTok available to American users.
U.S. authorities have long pushed for TikTok’s U.S. business to be separated from ByteDance, citing national security concerns linked to the company’s Chinese ownership.
