TikTok Agrees to Deal to Cede Control of US Business
However, the deal marks a significant shift in the company’s operations, as it will see major American investors take over significant control of the U.S.-based business.
Meanwhile, the new partnership is described as a “new TikTok U.S. joint venture” in an internal memo from ByteDance CEO Shou Chew.
Key Players in the Deal
Moreover, the newly formed investor group includes cloud giant Oracle, the tech-focused private equity firm Silverlake, and MGX, an Abu Dhabi-based investment firm focused on AI.
Consequently, those companies will own 45% of the U.S. operation, while ByteDance retains a nearly 20% share, the memo states.
Deal Details
In addition, the new entity formed by this partnership has been dubbed “TikTok USDS Joint Venture LLC.”
That new entity will be responsible for overseeing the app, including data protection, algorithm security, content moderation, and software assurance, the memo states.
Deal Timeline
Furthermore, the closing date for the deal is listed as January 22, 2026.
Therefore, the news was originally reported by Axios.
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