TikTok Cedes US Control to American Investor Group

TikTok has finalized a deal to transfer significant control of its U.S. operations to a consortium of American investors, ending a years-long dispute with the federal government. This agreement addresses Washington's national security concerns regarding the popular social media platform, which is owned by Chinese tech giant ByteDance.

The new arrangement, internally described by ByteDance CEO Shou Chew as a "new TikTok U.S. joint venture," will see major American firms take a controlling interest in the U.S.-based business. This newly formed investor group includes cloud computing giant Oracle, the tech-focused private equity firm Silverlake, and MGX, an Abu Dhabi-based investment firm specializing in artificial intelligence.

Together, these companies will hold a 45% stake in TikTok's U.S. operations. ByteDance will retain a nearly 20% share, according to an internal memo viewed by TechCrunch. The new entity established through this partnership has been formally named "TikTok USDS Joint Venture LLC."

TikTok USDS Joint Venture LLC will be tasked with overseeing critical aspects of the app's U.S. functions, including data protection, algorithm security, content moderation, and software assurance. The memo further specifies that "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 deal is slated to close on January 22, 2026. News of the agreement was initially reported by Axios.

Many elements of this deal, as outlined in the memo, align with the language of an executive order signed by then-President Trump in September. That order similarly approved the sale of TikTok's U.S. operations to an American investor group. CNBC had previously reported that Oracle, Silverlake, and MGX were expected to be the primary investors. Until now, ByteDance had largely kept the details of such a deal under wraps, only stating its commitment to comply with U.S. law to ensure TikTok's continued availability for American users.

The U.S. government has consistently pushed for TikTok's U.S.-based business to be separated from its Chinese parent company, citing national security concerns as the primary justification for this divestment.