TikTok agrees to a deal to cede control of the US business to a group of US investors

TikTok has reached an agreement to cede a significant portion of its US operations to a group of US investors, thus ending a years-long struggle in which the federal government sought to force the platform to do so.

The new partnership was described as “a new joint venture for TikTok in the US” in an internal memo from ByteDance CEO Shou Chew, which was seen by TechCrunch.

The arrangement will see major US investors assume significant control of US businesses. The newly formed group of investors includes cloud giant Oracle, technology-focused private equity firm Silverlake, and MGX, an Abu Dhabi-based investment firm focused on artificial intelligence. The memo stipulates that these companies will together own 45% of operations in the United States, while ByteDance will retain a roughly 20% stake. The new entity formed by this partnership was named “TikTok USDS Joint Venture LLC.”

The memo states that this new entity will be responsible for overseeing the app, including data protection, algorithm security, content moderation, and software assurance. “The trusted security partner will be responsible for auditing and verifying compliance with the agreed national security terms, and Oracle will be the trusted security partner upon completion of the transaction,” the document says.

The deal’s closing date was listed as January 22, 2026. It was news Originally reported by Axios.

Much of the deal, as described in the memo, parallels the language used Executive order It was passed by President Trump in September. Likewise, that memorandum approved the sale of TikTok’s US operations to a group of US investors. CNBC I mentioned previously Oracle, Silverlake and MGX will be the primary investors in the deal. So far, ByteDance has not revealed the details of such a deal. Except to say so It will comply with US law to ensure TikTok remains available to US users.

The US government has long sought to separate TikTok’s US-based business from its Chinese parent company, adopting… National security concerns As justification.