TikTok signs U.S. JV deal with Oracle, Silver Lake and MGX

TikTok said it has signed binding agreements to form a new U.S. joint venture majority-owned by American investors, a long-awaited step meant to secure the app’s future in its largest market and address national security concerns.

What Happened

In an internal memo to staff on December 18, CEO Shou Zi Chew said TikTok and parent company ByteDance signed agreements with Oracle, Silver Lake and MGX to establish a U.S.-based entity. The new venture, built on TikTok’s existing U.S. Data Security operation, would oversee U.S. data protection, algorithm safeguards and content moderation. Closing is expected on January 22, 2026, Chew told employees, noting there is more work to finish before then.

Reuters reported the entity will be called TikTok USDS Joint Venture LLC. The move follows years of scrutiny over the platform’s ownership and data handling as Washington pressed for a structural solution to keep the service available to American users.

How It’s Structured

The ownership split laid out in the memo gives 50% of the venture to a new investor consortium. Oracle, Silver Lake and MGX will each hold 15%. Affiliates of certain existing ByteDance investors will hold 30.1%, while ByteDance will retain a 19.9% stake, according to the memo reported by multiple outlets.

Associated Press reporting said the U.S. venture will have a majority-American board and that U.S. user data will be stored domestically in systems run by Oracle. The structure formalizes a security framework that has been taking shape for several years around TikTok’s U.S. operations.

Why It Matters

TikTok counts more than 170 million users in the United States. The joint-venture plan is designed to satisfy U.S. legal and policy demands for a separation from ByteDance’s China-based operations while preserving TikTok’s service for creators, advertisers and users. If completed as outlined, the deal would set clearer lines around data control, algorithm oversight and corporate governance inside the U.S.

What’s Next

TikTok said it is working toward the January 22 close. The company did not detail remaining approvals, but emphasized that the U.S. venture will take the lead on data and security functions once the transaction is completed. Investors and policymakers will be watching how quickly governance, data localization and algorithm protections are implemented as the new structure comes to life.

Sources

• TikTok signs deal to sell US unit to American investor-led venture — Reuters (December 18, 2025)
• TikTok Says It Signed Agreements for New US Joint Venture — Bloomberg (December 18, 2025)
• TikTok signs deal to form new US unit with investors, including Oracle, Silver Lake — Associated Press (December 18, 2025)