TikTok has finalized an agreement to sell a major stake in its US operations, ensuring compliance with America’s divest-or-ban law and securing the platform’s continued presence in the country. The closing date for the transaction is targeted for January 22, 2026.
Under the deal, a new entity called TikTok USDS Joint Venture LLC will be formed. Ownership will be split among new American investors, existing ByteDance investors, and ByteDance itself. A consortium of new investors—including Oracle, Silver Lake, and MGX—will collectively hold 50% of the joint venture. Existing ByteDance investors will own 30.1%, while ByteDance retains a 19.9% stake.
Data, Algorithms, and Content Under US Control
The US joint venture will have a seven-member board, mostly Americans, with authority over data protection, algorithm security, content moderation, and software assurance. TikTok confirmed that US user data will be stored securely on Oracle-operated cloud servers, while the recommendation algorithm will be retrained to prevent foreign influence.
The joint venture will operate independently to ensure user data and content remain secure, while global TikTok operations will continue handling advertising, e-commerce, and product interoperability. The company emphasized that the user experience will remain unchanged for its 170+ million US users.
Background
TikTok briefly went offline in January after missing previous divestment deadlines. Following negotiations and a framework agreement between the US and China in September 2025, the company was given multiple extensions to complete the sale.
Once finalized, this agreement will satisfy the executive order issued on September 25, 2025, and protect TikTok’s future in the US.
