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TikTok signs deal to sell US unit to American investor-led venture

TikTok will transfer majority control of its U.S. operations to a joint venture including Oracle, Silver Lake, and MGX, retaining 19.9% ByteDance ownership to comply with U.S. law.

  • By December 18, 2025, ByteDance and TikTok signed binding agreements with Oracle Corporation, Silver Lake and MGX to form TikTok USDS Joint Venture LLC, effective January 22, 2026.
  • Under a law passed last year, U.S. Congress required TikTok be sold or shut down over national security concerns, and President Donald Trump extended enforcement deadlines most recently to January 23, 2026.
  • The deal allocates ownership with the U.S. venture holding a 50% stake, ByteDance retaining 19.9%, and TikTok USDS Joint Venture LLC overseeing data protection, algorithm security, content moderation, and software assurance with Oracle as the trusted security partner.
  • The deal would allow over 170 million U.S. users to continue accessing TikTok, ending years of uncertainty for creators, advertisers, and small businesses relying on the platform.
  • The investor group includes an Abu Dhabi-backed firm, MGX, making ownership partly global, and policy makers say the deal could model future foreign tech and data sovereignty rules.
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TikTok announced on Thursday an agreement to create a joint venture with mostly American investors that would allow him to continue operating in the United States, according to a document from the company. The platform is under threat of ban in the United States due to its Chinese ownership. According to an internal TikTok memorandum that the AFP had access to, the agreement stipulates that 45% of the joint venture's control will be assigned to …

·Washington, United States
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Forbes broke the news in United States on Thursday, December 18, 2025.
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