ByteDance signs binding deal to sell majority of TikTok’s U.S. assets to Oracle-led group

ByteDance has signed binding agreements with three major investors to sell just over 80% of TikTok’s U.S. assets to American and global investors, a move aimed at averting a U.S. government ban, TikTok’s chief executive said in an internal message Thursday. The deal would form a new TikTok U.S. joint venture, named TikTok USDS Joint Venture LLC, and is set to close on Jan. 22.

TikTok CEO Shou Zi Chew told employees that ByteDance and TikTok signed binding agreements with three managing investors to sell just over 80% of the company’s U.S. assets to avoid a U.S. government ban. The memo confirms a plan that has been in motion for years, rooted in national-security concerns raised by U.S. officials beginning in 2020. The company noted that the arrangement would enable more than 170 million Americans to continue using the platform as part of a global community.

The trio of investors named to lead the U.S. operation are Oracle, Silver Lake and Abu Dhabi‑based MGX. The memo details an ownership structure for the new U.S. venture in which the direct ownership is split between a consortium of new investors and ByteDance’s existing affiliates. Specifically, the U.S. joint venture will be 50% held by a consortium of new investors, including Oracle, Silver Lake and MGX, with 15% ownership for each; 30.1% would be held by affiliates of ByteDance’s existing investors; and 19.9% would be retained by ByteDance. Oracle declined to comment, and questions from the White House were referred to TikTok by design.

The deal is presented as a major step toward resolving years of uncertainty about TikTok’s future in the United States since August 2020, when then-President Donald Trump sought to ban the app unless ByteDance divested its U.S. operations. Trump’s administration signaled a path forward in September by delaying enforcement of the ban until Jan. 20, allowing negotiations to proceed toward a divestiture that would meet government requirements.

TikTok’s memo emphasizes the strategic aim of preserving access for U.S. users while satisfying U.S. regulators. Chew’s message framed the plan as a way to safeguard the platform’s presence in the United States, noting that the deal aligns with the terms discussed in September and clears several regulatory hurdles ahead of a anticipated close in late January.

Analysts have described the arrangement as one of the most high-profile attempts to reconcile a global tech platform’s business model with U.S. national-security concerns. The agreement’s success hinges on final regulatory approvals and the consummation of the joint venture under the planned timetable. If the deal closes as scheduled, the operation would continue to serve a substantial U.S. user base under a U.S.-based corporate structure while meting the divestiture requirements that prompted the talks.

As the process unfolds, observers will watch for any additional conditions attached by U.S. authorities and for potential shifts in governance that could affect content policy, data security practices, and cross-border data flows. The companies have not disclosed specifics beyond ownership shares and the closing target, but the arrangement aims to deliver a structure that satisfies U.S. concerns without interrupting the user experience for TikTok’s American audience.

As part of the ongoing regulatory dialogue, the White House has directed questions to TikTok, and Oracle offered no comment on the latest terms. TikTok emphasized the deal’s alignment with the divestiture framework laid out earlier, stressing that it would preserve access for a broad American user base while addressing national-security concerns raised by lawmakers and regulators.

The next milestone remains the anticipated close on Jan. 22, at which point the new structure would become the operating vehicle for TikTok’s U.S. business. Whether additional adjustments are required or forthcoming will depend on subsequent reviews by U.S. authorities and potential scrutiny from lawmakers who have long debated whether a Chinese-owned platform can operate in the United States under current ownership.

The broader context remains a public policy battleground over data privacy, national security and the global reach of American technology platforms. The outcome of this deal could influence how other foreign-owned tech firms navigate U.S. regulatory expectations and how future divestiture discussions are conducted when national-security concerns intersect with consumer access to popular apps.

With the pact moving toward a close, the industry will be watching for legal milestones and any shifts in investor strategy as the U.S. venture assumes greater control over TikTok’s American operations. The deal’s fate could prove pivotal for a company whose U.S. user base has grown to include tens of millions of daily users and which has become a focal point in the debate over data, security and global tech governance.