What to know

  • TikTok's forming a new U.S. joint venture called TikTok USDS Joint Venture LLC, where Oracle, Silver Lake, and MGX will own 45% and ByteDance keeps about 20%.​
  • The group will handle app oversight, data protection, algorithms, content moderation, and security audits, with Oracle as the main security partner.​
  • Deal closes January 22, 2026, matching details from a Trump executive order in September.​
  • It ends the struggle to detach TikTok's U.S. operations from its Chinese parent ByteDance.

ByteDance, TikTok’s parent company, shared an internal note from CEO Shou Zi Chew explaining the plan. Soon, a new joint venture will be set up to handle TikTok’s U.S. operations. Major American players like Oracle, private equity firm Silver Lake, and Abu Dhabi–based AI company MGX will take on key ownership roles.

With this new setup, U.S. investors will be in charge of TikTok’s most sensitive areas. They’ll handle things like keeping American user data safe, overseeing the algorithm, moderating content, and making sure the app doesn’t pose security risks. An independent auditor will keep an eye on things, with Oracle expected to take the lead once everything is finalized.

The timing also lines up with pressure from President Trump earlier this year. His executive order opened the door for TikTok’s U.S. business to be sold instead of being banned outright. Until now, ByteDance hadn’t shared many details, only saying it would follow U.S. laws and keep the app running for American users.

The main worry from the U.S. government was that ByteDance could share American user data to China or allow Beijing to influence what shows up on people’s feeds. This deal looks like a way around a complete ban, while still giving U.S. authorities more control.

A lot is at stake. TikTok has more than 170 million users in the U.S, and a shutdown would have hurt creators, small businesses, and everyday users. Now all eyes are on whether regulators approve the deal, or if China pushes back. If it goes through, it could shape how other foreign-owned apps are handled.