TikTok has reached a deal to shift control of its U.S. operations to a group of American investors, ending years of uncertainty driven by U.S. government concerns over national security.
According to an internal memo from TikTok CEO Shou Zi Chew, seen by TechCrunch and The Associated Press, the agreement creates a new entity called TikTok USDS Joint Venture LLC. Under the deal, a consortium led by Oracle, private equity firm Silver Lake, and AI-focused investment firm MGX will collectively own 45% of the U.S. business, with each firm holding a 15% stake. ByteDance, TikTok’s China-based parent company, will retain a 19.9% ownership stake, while affiliates of existing ByteDance investors will hold the remaining 30.1%.
The new U.S. venture will be governed by a seven-member board with a majority of American directors and will oversee all U.S.-based operations, including data protection, algorithm security, content moderation, and software assurance. Oracle will serve as the trusted security partner, responsible for auditing compliance with U.S. national security requirements and hosting U.S. user data on its domestic cloud infrastructure.
Under the agreement, TikTok’s recommendation algorithm will be retrained using U.S. user data to ensure the platform’s content feed is insulated from external influence. The U.S. entity will also take full responsibility for moderation policies within the country.
The transaction is expected to close on January 22, 2026. Axios first reported the deal.
The structure closely mirrors provisions outlined in executive orders signed by President Donald Trump, which approved the sale of TikTok’s U.S. operations to an American-led investor group. The agreement brings resolution to a prolonged political and legal battle, after Congress passed — and President Joe Biden signed — legislation that would have banned TikTok in the U.S. if it failed to sever ties with ByteDance.
TikTok briefly went offline ahead of the law’s original deadline, but multiple executive orders extended the timeline as negotiations continued. The finalized deal now allows the popular video platform to continue operating in the United States while addressing longstanding national security concerns raised by U.S. officials.