TikTok Finalizes U.S. Deal with Oracle, Silver Lake/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ TikTok has signed a binding agreement to form a U.S.-based joint venture with Oracle, Silver Lake, and MGX. The new entity, expected to launch in January 2026, aims to meet U.S. national security requirements. The move comes after regulatory demands for ByteDance to divest ownership and control over TikTok’s algorithm.
TikTok U.S. Ownership Deal Quick Looks
- TikTok signed binding agreements with Oracle, Silver Lake, and MGX to form a U.S. joint venture.
- The deal is set to close on January 22, 2026.
- Oracle, Silver Lake, and MGX each acquire a 15% stake in the new venture.
- ByteDance retains 19.9%, while affiliates of ByteDance investors hold 30.1%.
- The U.S.-based entity will be governed by a seven-member majority-American board.
- All U.S. user data will be stored locally under Oracle’s management.
- TikTok’s algorithm will be retrained solely on U.S. user data.
- The platform’s U.S. operations will be isolated from foreign influence and manipulation.
- The deal follows a U.S. law requiring TikTok to sever ties with ByteDance’s algorithm.
- Trump issued multiple executive orders in 2025 to keep TikTok operational during negotiations.
- TikTok has over 170 million users in the U.S.
- Oracle shares rose by 5 percent following the announcement.
Deep Look: TikTok Signs U.S. Deal with Oracle and Investors
TikTok has reached a binding agreement with key American investors, including Oracle, Silver Lake, and the Emirati investment firm MGX, to form a new U.S.-based joint venture. This move secures the platform’s continued operation in the United States, addressing mounting national security concerns over its parent company ByteDance’s ownership and influence.
According to an internal memo reviewed by the Associated Press, the deal is expected to close on January 22, 2026. TikTok CEO Shou Zi Chew confirmed that agreements had been signed with the investment consortium. In the memo, Chew acknowledged employees’ continued work and emphasized the company’s ongoing focus on user satisfaction and platform growth.
The ownership structure of the new U.S. entity allocates 15 percent each to Oracle, Silver Lake, and MGX. ByteDance will retain a 19.9 percent stake, and an additional 30.1 percent will be held by affiliates of ByteDance’s current investors. Specific identities of these affiliates were not disclosed. Both TikTok and the White House declined to comment further on the deal.
A significant feature of the agreement is the formation of a seven-member board of directors, composed mostly of American citizens. This board will be responsible for ensuring that TikTok’s operations in the U.S. comply with national security standards.
A major component of the deal involves how U.S. user data is handled. Under the terms of the agreement, all data from American users will be stored within the U.S. on infrastructure managed by Oracle. This measure is intended to prevent foreign access to user data and eliminate concerns of covert manipulation by foreign governments.
Another crucial element is the algorithm that powers TikTok’s content recommendation system. Often referred to as the app’s “secret sauce,” the algorithm has been a key concern for U.S. lawmakers. It will now be retrained exclusively using U.S. user data to avoid any potential outside manipulation, particularly from China. This step also ensures that content moderation and policy enforcement are handled domestically.
For years, American officials have worried that ByteDance’s control over TikTok could allow the Chinese government to subtly influence U.S. public opinion through algorithmic content curation. China had previously insisted that the algorithm remain under Chinese jurisdiction, but bipartisan U.S. legislation passed in 2025 required full divestment of TikTok’s U.S. operations, including its recommendation engine.
The announcement ends a prolonged period of uncertainty that began after Congress passed a law banning TikTok unless it broke away from ByteDance. The law set a deadline of January 2025, which was briefly met when TikTok went offline. On his return to office, President Donald Trump signed an executive order to temporarily keep the app running. That order marked the first of several issued throughout 2025, each extending TikTok’s ability to operate while a sale was pursued.
A near-deal in April fell apart after China withdrew following the announcement of new U.S. tariffs. Further executive orders were issued in June and September, with the Trump administration eventually approving a framework that aligned with national security standards. That framework has now resulted in the formal agreement with Oracle and the other investors.
TikTok continues to be a dominant force in U.S. social media, particularly among younger demographics. A Pew Research Center study published in fall 2025 found that 43 percent of American adults under 30 regularly get news from TikTok. This figure surpasses similar usage on YouTube, Facebook, and Instagram.
Despite the structural changes, users are not expected to notice significant changes to the platform. Advertisers will also continue to operate across global markets without disruption.
Investor confidence in the deal was reflected in the markets. Oracle’s stock rose $9.07 in after-hours trading, an increase of 5 percent, closing at $189.10. The gain signals investor optimism in Oracle’s increasing role in safeguarding data infrastructure and serving as a trusted partner in high-profile technology ventures.
As TikTok transitions to this new ownership model, the spotlight now shifts to how the joint venture will be governed, how data protections will be enforced, and whether U.S. regulators will be satisfied with the long-term implementation of the agreement’s security provisions.
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