Investors Secure Control of TikTok’s US Operations Through Joint Venture

Chinese company ByteDance has signed binding agreements with a consortium of investors led by Oracle to transfer control of its US operations for the popular social media platform, TikTok. This strategic move aims to circumvent a potential ban in the United States, which has faced scrutiny over national security concerns linked to the app’s Chinese ownership.

According to a report from Bloomberg, the new TikTok USDS joint venture will see the investors, including private equity firm Silver Lake and the Abu Dhabi investment company MGX, acquire an 80.1 percent stake. ByteDance will retain a 19.9 percent ownership in the venture. An internal memo from TikTok CEO Shou Chew disclosed that the deals have been finalized and are expected to close on January 22, 2026. Chew mentioned that while significant progress has been made, “there’s more work to be done before then.”

Implications for TikTok’s Future in the US

If the transactions proceed as planned, TikTok will function as an independent US joint venture. This new structure will oversee key aspects such as data management, content moderation, and algorithm security. Additionally, the joint venture will be governed by a new board of directors, comprised of seven members, maintaining a US majority.

The significance of this agreement cannot be overstated, as it potentially brings an end to years of uncertainty regarding TikTok’s presence in the United States. The scrutiny surrounding TikTok intensified when former President Donald Trump initiated efforts to ban the app in 2020, citing security risks associated with its Chinese ownership. In September 2023, Trump signed an executive order that facilitated the separation of TikTok from ByteDance, allowing US investors to assume a majority stake in the new entity.

Pending Regulatory Approval and Future Steps

While the agreements between ByteDance and the investors represent a considerable advancement, regulatory approval from Chinese authorities remains uncertain. Bloomberg has reported that officials in China have not yet confirmed their consent to the deal.

The involvement of prominent investors such as Oracle, Silver Lake, and MGX underscores a significant shift in the ownership structure of a platform that has garnered immense popularity among users. As the deal progresses, it will be crucial to monitor both the regulatory landscape and the operational changes that will define TikTok’s future in the US market.

The outcome of this venture could reshape the social media landscape, impacting not only TikTok but also broader discussions regarding data privacy and national security in the digital age.