TikTok signs deal ceding US control to Oracle-led group
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TikTok and its parent ByteDance signed binding agreements to restructure TikTok’s U.S. operations into a new American-controlled joint venture, aiming to satisfy the U.S. divest-or-ban law tied to national security concerns. The company is targeting a closing date of January 22, 2026, which would allow TikTok to keep operating in the U.S. rather than face removal under the 2024 Protecting Americans From Foreign Adversary Controlled Applications Act. The plan builds on TikTok’s U.S. Data Security (USDS) structure and shifts key governance for U.S. trust-and-safety and security functions to the new U.S. entity.

TikTok logo shown on a phone with a U.S. flag in the background (illustration photo).

Highlights:

  • Ownership split: Under the internal memo described by Axios, Oracle, Silver Lake and MGX would collectively hold 45% of the new U.S. entity, while ByteDance would retain about 20% and affiliates of existing ByteDance investors would hold nearly one-third.
  • Algorithm changes: The deal terms include retraining TikTok’s recommendation algorithm on U.S. user data to help ensure the feed is “free from outside manipulation,” according to reporting summarized by The Hollywood Reporter and others.
  • Oracle oversight: Oracle is slated to oversee U.S. data-protection compliance by auditing and validating adherence to the deal’s National Security Terms.
  • China approval: Several outlets note the closing still depends on approvals, including uncertainty about where Chinese officials stand on the arrangement.
  • Extensions path: TikTok was briefly banned in January, then returned after President Trump signed an executive order granting an extension; subsequent extensions have kept the app running while negotiations continued.

Perspectives:

  • TikTok CEO Shou Zi Chew: Chew told employees the U.S. joint venture (built on the USDS organization) would operate as an independent entity with authority over U.S. data protection, algorithm security, content moderation and software assurance. (Engadget)
  • U.S. government / lawmakers supporting divestment: U.S. policy pressure has focused on national security concerns tied to TikTok’s Chinese ownership, pushing a sale to avoid a ban under the 2024 law. (NPR)
  • Sen. Elizabeth Warren: Warren criticized President Trump’s support for the deal and framed it as benefiting wealthy allies, according to The Guardian’s reporting. (The Guardian)

Sources:

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