Oracle, Silver Lake Lead TikTok U.S. Deal Closing Next Month
▼ Summary
– A consortium of American investors will take over TikTok’s U.S. operations on January 22, 2026, forming a new joint venture called TikTok USDS Joint Venture LLC.
– The new ownership structure gives 45% to managing investors Oracle, Silver Lake, and MGX, with ByteDance retaining 19.9% and other investors holding the remainder.
– TikTok CEO Shou Chew confirmed the finalized deal, emphasizing a continued focus on serving users and creators.
– Key terms of the agreement include retraining the content algorithm on U.S. data and granting Oracle oversight of data protection and content moderation policies.
– The deal follows an executive order from President Trump that averted a potential ban of the app in the United States.
A major shift in the social media landscape is now official, with a consortium of American-led investors set to assume control of TikTok’s U.S. operations next month. The transfer is scheduled for completion on January 22, 2026, marking the end of a prolonged period of negotiation and regulatory scrutiny. This move establishes a new joint venture, TikTok USDS Joint Venture LLC, as the owner of the platform’s domestic business, fundamentally altering its corporate structure.
The ownership breakdown reveals a carefully negotiated arrangement. Oracle Corporation, Silver Lake, and Abu Dhabi’s state investment firm MGX will serve as the three “managing investors,” collectively holding a 45 percent stake. An additional 5 percent will be distributed among other new investors. The remaining shares will be split, with 30.1 percent held by affiliates of certain existing ByteDance investors and 19.9 percent retained by ByteDance itself. This structure aims to satisfy U.S. national security concerns while maintaining some continuity with the app’s Chinese parent company.
TikTok CEO Shou Chew communicated these details to employees in a memo, expressing gratitude for their work during a challenging period. He emphasized that the team’s focus must remain on serving users, creators, and the broader community. The agreement includes several critical operational safeguards designed to address government worries. Oracle will oversee data protection, and the content recommendation algorithm will be retrained exclusively on U.S. user data to prevent outside manipulation. Furthermore, the U.S. entity will possess ultimate decision-making authority for all content moderation and related policies within the country.
The path to this deal was complex, involving executive orders from the Trump administration that postponed a potential ban to allow for negotiations. While former President Trump had previously suggested the Murdoch family could be involved, it remains unclear if Fox Corp. is part of the investor group comprising the final 5 percent. The finalized agreement ultimately supersedes earlier legislative efforts that sought to outlaw the app entirely.
The leading investors bring significant media and technology expertise to the table. Oracle’s involvement is particularly notable, as founder Larry Ellison has been actively supporting his son’s pursuits in the entertainment sector, including bids for Paramount and Warner Bros. Discover. Similarly, Silver Lake brings deep industry connections, controlling major entities like talent agency WME and TKO Group Holdings, and recently partnering to acquire video game publisher Electronic Arts. Their combined experience suggests a strategic focus on leveraging TikTok’s platform within the broader media ecosystem.
(Source: Hollywood Reporter)
