TikTok says it has signed binding agreements to place its U.S. operations into a new joint venture backed by Oracle, Silver Lake and Abu Dhabi-based MGX, a step aimed at keeping the app available to Americans and avoiding a shutdown risk tied to the U.S. divest-or-ban law. The arrangement follows years of U.S. government pressure over national-security concerns and a Supreme Court decision that upheld the requirement for ByteDance to divest or face U.S. distribution and hosting cutoffs. TikTok’s CEO told staff the U.S. venture is designed to operate independently on U.S. data protection and recommendation-technology work while still linking to TikTok’s global product lines like advertising and e-commerce. The deal is expected to close in January, offering businesses that market on TikTok a clearer path for continuity after months of uncertainty.

Highlights:

• Ownership split: An internal memo described a structure in which a consortium of new investors would hold 50% (15% each for Oracle, Silver Lake and MGX), affiliates of existing ByteDance investors would hold 30.1%, and ByteDance would retain 19.9%.
• Trump involvement: Several outlets describe the arrangement as a Trump-backed or Trump-brokered solution, with the administration previously indicating it had approved a sale to an investor consortium.
• Platform resilience: TikTok briefly went dark in the U.S. earlier this year as it moved to comply with the divest-or-ban framework, underscoring how operational continuity has become a commercial priority for creators and advertisers.
• Oracle upside: MarketWatch reported Oracle shares rose as investors anticipated a larger role for Oracle’s cloud business as the “backbone” for TikTok’s U.S. setup.
• Distribution leverage: The divest-or-ban law is structured around access to U.S. app stores and web-hosting services, giving major tech gatekeepers and cloud providers a key compliance role.

Perspectives:

• TikTok management (Shou Zi Chew): Leadership told employees the U.S. joint venture would operate independently in areas such as U.S. data protection and work on the recommendation algorithm, while staying connected to global product lines like advertising and e-commerce. (Business Insider)
• U.S. government / Congress: U.S. policy required ByteDance to divest TikTok’s U.S. operations or face bans on distribution and certain services, reflecting national-security concerns about foreign adversary control. (CBS News)
• ByteDance and deal architects: The structure involves U.S. investors funding a data-security-focused joint venture while ByteDance retains a stake, reflecting a compromise between continued ownership and U.S. control requirements. (Financial Times)
• Sen. Elizabeth Warren: She criticized the President and his allies in response to the deal, framing it as benefiting wealthy backers. (The Guardian)

Sources:

• TikTok reaches a deal with investors on its US business - businessinsider.com
• TikTok signs deal for sale of U.S. operations to American investors - cbsnews.com
• China's ByteDance signs deal to form joint venture in step to avoid US TikTok ban - Reuters - google.com
• TikTok signs agreement to create new U.S. joint venture, memo says - cnbc.com
• TikTok signs deal to form new US unit with investors, including Oracle, Silver Lake - seattletimes.com
• TikTok Agreement for New US Joint Venture, Nike Earnings, More - bloomberg.com
• TikTok owner signs deal to avoid US ban - bbc.com
• TikTok Signs Agreements With Investors in Step Toward Avoiding a U.S. Ban - nytimes.com
• TikTok signs Trump-backed deal to sell US entity to American investors - theguardian.com
• TikTok says Chinese owner will retain core US business - ft.com
• TikTok avoids ban with majority US-owned entity - reddit.com
• TikTok signs deal to sell U.S. unit to American investors, including Oracle and Silver Lake - pbs.org
• TikTok signs deal to sell US unit to American investors - chicagotribune.com
• Oracle’s stock is rising. Why TikTok’s U.S. deal could be good news for the tech company. - marketwatch.com