TikTok has agreed to a major restructuring of its United States business, transferring substantial control to a consortium of American investors in a move aimed at resolving long-standing national security concerns raised by the U.S. government.

According to an internal memo from ByteDance Chief Executive Officer, Shou Chew, the arrangement will create a new entity described as a “TikTok U.S. joint venture.” The agreement marks a significant shift in ownership and governance, following years of regulatory pressure to separate TikTok’s U.S. operations from its Chinese parent company.

Under the proposed structure, leading U.S.-based investors—including cloud technology firm Oracle, private equity company Silver Lake, and MGX, an Abu Dhabi-based artificial intelligence investment firm—will collectively hold a 45 percent stake in the American business. ByteDance will retain just under 20 percent ownership. The new company will operate under the name TikTok USDS Joint Venture LLC.

The joint venture will assume responsibility for key operational areas such as user data protection, algorithm integrity, content moderation, and software security. Oracle is expected to serve as the trusted security partner, tasked with auditing and validating compliance with agreed national security requirements once the transaction is completed.

The deal is scheduled to close on January 22, 2026. While details of the arrangement had previously been limited, earlier reports had identified Oracle, Silver Lake, and MGX as central players in negotiations. ByteDance had maintained that it would comply with U.S. laws to ensure the platform’s continued availability to American users.

The framework of the agreement closely mirrors provisions outlined in an executive order signed by former President Donald Trump in September, which endorsed the transfer of TikTok’s U.S. operations to American ownership. The U.S. government has consistently argued that separating TikTok from ByteDance is necessary to safeguard national security, citing concerns over data access and foreign influence.

This latest development signals a potential turning point in the prolonged standoff between TikTok and U.S. regulators, offering a pathway for the popular social media platform to maintain its presence in the American market under enhanced domestic oversight.

Source: Techcrunch