TikTok agrees to deal to cede control of US business to American investor group

TikTok has officially agreed to transfer significant control of its U.S. operations to a consortium of American investors, marking a pivotal moment in a prolonged dispute with federal authorities. This announcement comes as part of a strategic initiative to alleviate national security concerns that have surrounded the popular social media platform. In an internal memo shared by ByteDance CEO Shou Chew, the arrangement is referred to as a "new TikTok U.S. joint venture." This partnership will empower prominent American investors to take the reins of TikTok's U.S. business. The investor group comprises major players, including Oracle, the private equity firm Silverlake, and MGX, an Abu Dhabi-based firm specializing in artificial intelligence. Under this new structure, the American investors will collectively own 45% of the U.S. business, while ByteDance will maintain a nearly 20% stake, according to the memo. The newly established entity, named "TikTok USDS Joint Venture LLC," will oversee critical functions of the app, such as data security, algorithm integrity, content moderation, and software compliance. Furthermore, the memo specifies that a trusted security partner will be designated to ensure adherence to national security protocols, with Oracle set to assume that role once the transaction is finalized. The anticipated closing date for this deal is January 22, 2026. This development reflects the terms outlined in a previous executive order issued by former President Trump, which also sought to divest TikTok's U.S. operations from its Chinese ownership. Until now, ByteDance had remained relatively tight-lipped about the specifics of the agreement, stating only that it would comply with U.S. regulations to keep TikTok accessible to American users. The ongoing efforts by the U.S. government underscore a persistent desire to separate TikTok's U.S. business from its Chinese parent company amidst ongoing national security debates.