TikTok has finalized a deal to establish a new U.S. joint venture primarily controlled by American investors, including Oracle Corporation, Silver Lake, and MGX, according to an internal memo from TikTok CEO Shou Chew, obtained by Baltimore Chronicle with reference to Axios. The agreement marks a major step in resolving the years-long uncertainty over TikTok’s U.S. operations, following last year’s congressional law requiring a ban on TikTok in the United States if its Chinese parent company, ByteDance, did not sell its U.S. operations to American owners.
In the memo, Chew emphasized that “there’s more work to be done” as the venture moves toward the planned closing date of January 22, 2026. He added, “We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
Under the terms of the agreement, Oracle, Silver Lake, and MGX will each hold a 15% stake in the new entity, while ByteDance will retain 19.9%. An additional 30.1% will be owned by affiliates of existing ByteDance investors. MGX is based in the United Arab Emirates, while Oracle and Silver Lake declined to comment. Oracle, co-founded by Larry Ellison, is also controlled by him as its largest shareholder.
Privacy and free speech experts have raised concerns about the deal, noting Ellison’s control of CBS through Paramount, past attempts to acquire Warner Bros, and close ties to former President Donald Trump.
The memo highlights that, pursuant to the Executive Order signed by President Trump on September 25, 2025, the U.S. joint venture will be majority-owned by American investors, overseen by a seven-member majority-American board of directors, and subject to terms protecting Americans’ data and national security. Responsibilities will include U.S. data protection, algorithm security, content moderation, and software assurance. Oracle will serve as the “trusted security partner,” auditing and validating compliance with National Security Terms after the transaction is completed.
Previously, in September, the White House revealed details of a “framework deal” between the U.S. and China to preserve TikTok’s U.S. operations. A senior official stated that a copy of TikTok’s algorithm—the core mechanism driving the platform’s engagement—would be transferred to the U.S. joint venture under Oracle’s oversight to comply with U.S. and Chinese regulations.
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