ByteDance agrees to divest majority of TikTok’s U.S. assets to Oracle, Silver Lake and MGX in binding deal
New U.S. joint venture aims to preserve access for American users while addressing national-security concerns surrounding the globally popular video app.
ByteDance, the Chinese owner of TikTok, has signed binding agreements with three major investors to sell just over 80% of the company’s U.S. assets to a group of American and global investors, TikTok CEO Shou Zi Chew told employees on Thursday. The move is designed to prevent a ban on the app in the United States and to accelerate a framework for separating TikTok’s U.S. operations from its global platform.
A memorandum circulated to staff said the deal creates a U.S. joint venture, TikTok USDS Joint Venture LLC, that would be operated by a consortium of new investors and ByteDance, with the closing date targeted for Jan. 22. The agreement formalizes a path that had been outlined in September, when then-President Donald Trump delayed enforcement of a U.S. ban until Jan. 20, contingent on the divestiture of TikTok’s U.S. assets. The White House referred questions about the deal to TikTok.
Under the ownership structure described in the memo, the U.S. joint venture would be 50% owned by a consortium of the new investors, including Oracle, Silver Lake and Abu Dhabi-based MGX, with 15% ownership for each; 30.1% would be held by affiliates of ByteDance’s existing investors; and ByteDance would retain 19.9%. The memo also states that Oracle, Silver Lake and MGX would collectively own 50% of the new entity, while earlier reporting by Reuters and other outlets in September had suggested the consortium might hold about 45% of the new venture. ByteDance did not respond to a request for comment.
The deal marks a major step in years of uncertainty surrounding TikTok’s fate in the United States. Chew emphasized that the divestiture would enable “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” according to the memo.
The move comes as the White House continues to balance security concerns with a desire to preserve a widely used social-media platform at a time when U.S. officials have scrutinized data access and national-security risks tied to Chinese ownership. Tomes of background on the politics surrounding the TikTok dispute date back to August 2020, when then-President Trump sought to ban the app unless ByteDance divested its U.S. operations. Those efforts culminated in a series of deadlines and negotiations that have persisted through multiple administrations and several legal and regulatory developments.
Analysts have said the binding agreements, if finalized, could provide a framework for continued American use of TikTok while subjecting the platform to heightened U.S. security and data-access safeguards. The timeline remains subject to regulatory approval and potential conditions imposed by U.S. authorities.
TikTok did not immediately respond to requests for additional details. The company has consistently argued that the proposed structure would ensure robust data protection, operational transparency and compliance with U.S. laws.
In the broader context, the deal underscores a high-stakes effort to resolve a long-running policy dispute over data sovereignty and national security. The White House’s position has hinged on assurances that U.S. user data would be stored and managed under American supervision, with access restricted to American personnel and compliant with U.S. law. Whether the new structure satisfies those conditions will likely be a focal point for regulators in the weeks ahead as the Jan. 22 closing date approaches.
As negotiations continue, the potential impact on the broader social-media landscape remains a subject of interest for advertisers, creators and users who rely on TikTok for entertainment, information and earnings. The succession of public and private-sector steps illustrates how a global platform can navigate a shifting regulatory environment while attempting to preserve user access and platform viability in a highly dynamic market.
The deal’s conclusion could influence how other foreign-tech companies approach U.S. regulatory risk and could set a precedent for future divestiture arrangements tied to national-security concerns. For now, investors and users alike await official confirmation of a closing that would cement a new, U.S.-centric ownership structure for the country’s largest short-video platform.