TikTok Cedes U.S. Control to American Investor Group in Major Security-Focused Deal

TikTok has reached a landmark agreement to transfer significant control of its U.S. operations to a consortium of American investors, effectively ending years of negotiations with the federal government over national security concerns. The deal, revealed in an internal memo from ByteDance CEO Shou Chew, will create a new TikTok U.S. joint venture overseen primarily by U.S.-based companies.

The investor group taking the reins includes cloud giant Oracle, private equity firm Silverlake, and Abu Dhabi-based AI-focused MGX. Together, these companies will hold 45% of the U.S. operation, while ByteDance, TikTok’s Chinese parent company, retains roughly 20%. The new entity has been officially named “TikTok USDS Joint Venture LLC.”

According to the memo, the joint venture will manage critical aspects of the app, including data protection, algorithm security, content moderation, and software integrity. Oracle will serve as the trusted security partner responsible for auditing and validating compliance with national security terms, ensuring U.S. users’ data and the platform’s algorithms meet strict oversight requirements.

The deal is expected to close on January 22, 2026. While the agreement reflects language similar to a 2020 executive order signed by former President Donald Trump, this is the first time ByteDance has publicly detailed the arrangement. Previously, the company had only stated it would comply with U.S. law to maintain TikTok’s availability for American users.

The move comes after years of U.S. government pressure to separate TikTok’s American operations from its Chinese parent company. National security concerns have been at the heart of the debate, with regulators citing potential risks over user data access and algorithm transparency. This deal marks a major milestone in resolving those long-standing concerns while keeping the popular platform accessible in the United States.

source: techcrunch