TikTok U.S. Operations Sold to American Investor Consortium

TikTok has signed a binding agreement to sell the majority of its U.S. business to a new joint venture, ensuring the popular social media platform can continue operating in the United States and comply with federal law. The deal, which aims to resolve years of national security concerns over its Chinese parent company ByteDance, is expected to close on January 22, 2026. 

The New Ownership Structure

The U.S. operations will be managed by a new entity, the TikTok USDS Joint Venture LLC, with a majority of American ownership and a new, mostly American board of directors. 

The ownership breakdown of the new joint venture is as follows:

• 45% owned by a consortium of new investors: This includes tech giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment firm MGX, each holding a 15% stake.

• 30.1% held by affiliates of existing ByteDance investors.

• 19.9% retained by ByteDance, its original Chinese parent company. 

Key Changes and What They Mean for Users

The new structure is designed to safeguard American user data and address national security concerns. 

• Data Security: American user data will be hosted in a cloud system run by Oracle, which will also independently monitor the app's code to ensure security.

Algorithm and Content: The powerful recommendation algorithm that drives the app will be retrained using only American user data, and content moderation decisions will be handled by the U.S. entity.

• Continued Operation: The deal ensures that the more than 170 million Americans who use the app can continue to do so without fear of a ban. 

The move brings an end to the uncertainty surrounding the platform's future in the U.S., a saga that has involved a law passed by Congress and multiple executive orders to extend the deadline for the sale.