The long-running uncertainty hanging over TikTok’s future in the United States has finally lifted, with the sale of its U.S. operations now formally sealed and a takeover date set for Jan. 22, 2026.
A consortium of American and allied investors will assume control of the video-sharing platform’s U.S. business, bringing an end to years of political pressure, regulatory threats, and negotiations that once put the app on the brink of an outright ban.
Under the agreement, TikTok’s U.S. operations will be housed in a new entity, TikTok USDS Joint Venture LLC. Ownership of the venture is carefully structured to address U.S. national security concerns while keeping ByteDance, TikTok’s Chinese parent, financially involved. Three managing investors—Oracle Corporation, private equity firm Silver Lake, and Abu Dhabi state investment firm MGX—will collectively hold 45% of the new company. Another 5% will be owned by additional new investors whose identities have not been fully disclosed. Affiliates of existing ByteDance investors will hold 30.1%, while ByteDance itself will retain a 19.9% stake.
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The ownership split underscores the political balancing act behind the deal. U.S. authorities had insisted on meaningful American control of TikTok’s operations, particularly its data and content systems, while ByteDance pushed to remain an economic participant in one of its most valuable markets.
TikTok chief executive Shou Chew confirmed that the transaction has been officially signed in a memo to staff on Thursday, a copy of which was viewed by The Hollywood Reporter. Chew struck a reassuring tone, emphasizing continuity for employees and users despite the change in ownership.
“I want to take this opportunity to thank you for your continued dedication and tireless work,” Chew wrote. “Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world. With these agreements in place, our focus must stay where it’s always been—firmly on delivering for our users, creators, businesses and the global TikTok community.”
President Donald Trump signed an executive order in September formally sealing the TikTok deal, though few concrete details were made public at the time. Trump had earlier floated the possibility that the Murdoch family, through Fox Corp., could join the ownership group. It remains unclear whether Fox or Murdoch-linked entities are among the unnamed investors taking up the remaining 5% stake.
The deal caps a turbulent chapter for TikTok in Washington. The app had faced legislation that would have effectively banned it from operating in the United States unless ByteDance divested. Trump intervened with executive orders that delayed enforcement of the ban, creating space for negotiations that ultimately led to the current agreement.
Beyond ownership, the structure of control and oversight appears designed to directly confront the concerns that drove the political backlash against TikTok in the first place. Chew said the agreement includes retraining TikTok’s content recommendation algorithm using U.S. user data, with the explicit aim of ensuring the feed is insulated from external influence.
Oracle will oversee data protection, reinforcing its role as the trusted custodian of U.S. user information, while the deal also grants ultimate decision-making authority over content moderation and related policies within the United States to the U.S.-based entity.
Those provisions are likely to be closely scrutinized by lawmakers and regulators who have long argued that TikTok’s algorithm and data practices posed national security risks.
The investor lineup also highlights the deepening ties between technology, media, and global capital. Oracle and Silver Lake bring significant experience in both enterprise technology and entertainment. Oracle founder Larry Ellison has become an increasingly influential figure in Hollywood, backing his son David Ellison’s bid to acquire Paramount and playing a role in efforts to secure Warner Bros. Discovery, with Oracle’s financial firepower underpinning those ambitions.
Silver Lake, meanwhile, is already a major force across media and sports. It owns talent agency WME, controls TKO Group Holdings, and in September partnered with Saudi Arabia’s Public Investment Fund in the acquisition of video game publisher Electronic Arts, further cementing its influence in digital entertainment.
The deal secures continued access to TikTok’s most lucrative advertising market at a time when competition with Meta’s Instagram Reels and Google’s YouTube Shorts remains fierce. It also delivers a politically defensible outcome that avoids banning a platform used by tens of millions of Americans while asserting U.S. oversight.
The Background of The Sale
TikTok’s troubles in the United States date back to its explosive growth. The short-form video app rapidly became one of the most influential social platforms in the country, reshaping online culture, advertising, music promotion, and political messaging. That success also drew scrutiny from U.S. lawmakers and security agencies, who argued that TikTok’s ownership by China-based ByteDance could expose sensitive user data or allow foreign influence over content consumed by millions of Americans.
Concerns intensified as geopolitical tensions between Washington and Beijing worsened. Lawmakers repeatedly questioned TikTok executives on Capitol Hill, pressing them on data storage, algorithmic control, and the potential for Chinese government access. TikTok responded by insisting that U.S. user data was not shared with Chinese authorities and by rolling out mitigation measures, including storing U.S. data on servers overseen by Oracle.
Those steps, however, failed to fully calm political anxiety.
The pressure peaked with a 2024 legislation that would have effectively banned TikTok in the United States unless ByteDance divested control of its U.S. business. The prospect of a ban threatened to wipe out a platform used by tens of millions of Americans, disrupt a massive creator economy, and hand an advantage to rivals such as Meta Platforms’ Instagram and Google’s YouTube.
President Donald Trump emerged as a central figure in the final phase of the standoff. While he had sought to ban the app through executive order during his first term, Trump ultimately opted for a negotiated outcome rather than an abrupt shutdown this time. He signed executive orders postponing the enforcement of the ban, giving TikTok time to reach an agreement that would satisfy U.S. security demands while preserving the app’s operations.
Those negotiations culminated in the deal announced this week.