The TikTok US Sale is Finally Happening
According to an internal memo, TikTok’s algorithm will be retrained on US user data after the deal closes in January.
The sale is a result of the divest-or-ban law, which was initially reported by Axios, The Hollywood Reporter, and CNBC.
TikTok has finalized a deal to sell enough of its US business to satisfy the law, with a closing date of January 22nd, 2026.
Ownership Stakes and Structure
The U.S. joint venture will be 50% held by a consortium of new investors, including Oracle, Silver Lake, and MGX with 15% each.
30.1% will be held by affiliates of certain existing investors of ByteDance, and 19.9% will be retained by ByteDance.
The joint venture will oversee its own algorithm, content moderation, data security, and deployment of the US version of the app and platform.
Key Terms and Timeline
The transaction will be completed no later than 120 days from the date of the Executive Order.
Upon the closing, the U.S. joint venture will operate as an independent entity with authority over U.S. data protection, algorithm security, content moderation, and software assurance.
The U.S. joint venture will be responsible for U.S. data protection, algorithm security, content moderation, and software assurance.
Conclusion and Next Steps
With these agreements in place, TikTok’s focus will remain on delivering for its users, creators, businesses, and the global TikTok community.
There’s more work to be done as they move towards the closing date of January 22, 2026.
TikTok will continue to update employees on the process and other details within the timeframe.
Source: Link
