TikTok Forms U.S.-Majority Joint Venture to Avert Ban

ByteDance and TikTok have signed binding agreements with U.S.-based investors Oracle Corporation, Silver Lake, and Abu Dhabi-based MGX to establish a new American-majority-owned joint venture for the platform's U.S. operations, averting a potential nationwide ban and addressing long-standing national security concerns.

The deal, detailed in an internal memo from TikTok CEO Shou Zi Chew to employees, creates TikTok USDS Joint Venture LLC, set to close on January 22, 2026. Under the agreement, the venture will be 50 percent owned by a consortium of new investors, including 15 percent stakes each for Oracle, Silver Lake, and MGX. Affiliates of existing ByteDance investors will hold 30.1 percent, while ByteDance retains 19.9 percent. The structure ensures majority American ownership and includes a seven-member board with a majority of U.S. representatives.

The joint venture will oversee critical aspects of TikTok's U.S. activities to safeguard user data and national security. Oracle will serve as the trusted security partner, managing data storage in a secure U.S.-based cloud environment. Additional measures include retraining the content recommendation algorithm using only U.S....