TikTok Strikes Deal to Shift Control of U.S. Business to American Investors

TikTok has reached a major turning point in its long-running battle with U.S. regulators.

The short-video giant has agreed to cede significant control of its U.S. operations to an American investor group, marking the most concrete step yet toward resolving national security concerns raised by the U.S. government.

A New TikTok U.S. Joint Venture

According to an internal memo from ByteDance CEO Shou Chew, TikTok will form a new entity called TikTok USDS Joint Venture LLC. This joint venture will oversee TikTok’s U.S.-based business, including:

• Data protection

• Algorithm security

• Content moderation

• Software assurance

The goal is simple: ensure TikTok’s U.S. operations are governed and secured by trusted American partners.

Who Owns What?

Under the new structure:

• American investors will own 45% of the U.S. business

• ByteDance will retain nearly 20% ownership

• The remaining stake will be distributed among other partners

The investor group includes some major names:

• Oracle, the cloud computing giant

• Silver Lake, a leading technology-focused private equity firm

• MGX, an Abu Dhabi-based AI investment firm

Oracle will also serve as TikTok’s trusted security partner, responsible for auditing and validating compliance with U.S. national security requirements.

Why This Deal Matters

For years, the U.S. government has pushed TikTok to separate its American operations from its Chinese parent company, citing concerns over data privacy and potential foreign influence.

This deal closely mirrors language from a September executive order signed by President Trump, which approved the sale of TikTok’s U.S. operations to an American-led group. While reports had hinted at Oracle and Silver Lake’s involvement before, this is the first time ByteDance has confirmed detailed ownership and governance terms.

What Happens Next?

The transaction is expected to close on January 22, 2026. Once completed, the new joint venture will have operational oversight of TikTok in the U.S., while ByteDance steps back from day-to-day control.

For TikTok, this agreement could finally secure its future in one of its largest and most valuable markets. For U.S. regulators, it represents a compromise that places data security and platform governance under American supervision.

The Bigger Picture

This deal highlights a growing global trend: governments demanding stronger local control over foreign-owned digital platforms. As geopolitics and technology continue to intersect, TikTok’s U.S. restructuring could become a blueprint for how international tech companies navigate regulatory pressure in the years ahead.

For now, TikTok remains available to U.S. users backed by a new ownership structure designed to keep it that way.