ByteDance, the Chinese owner of TikTok, has signed binding agreements with three major investors to form a new joint venture that will operate TikTok’s US app. The move aims to prevent a nationwide ban and marks a turning point after years of regulatory uncertainty.
TikTok confirmed that the new entity will be led by American and global investors, who will collectively hold an 80.1% stake. ByteDance will retain a 19.9% ownership following the divestment. The deal affects a platform used regularly by more than 170 million Americans.
TikTok CEO Shou Zi Chew told employees that the agreement allows US users to continue accessing the app while complying with US legal requirements. He said the new company will function as an independent entity with full authority over US data protection, algorithm security, content moderation, and software assurance.
According to internal communications seen by Reuters, ByteDance and TikTok have partnered with Oracle, Silver Lake, and Abu Dhabi-based MGX as managing investors. Together, the three firms will own 45% of the new venture, named TikTok USDS Joint Venture LLC. Affiliates of existing ByteDance investors will hold a 30.1% stake.
TikTok's CEO Shou Chew told employees that the social media company and its parent ByteDance signed binding agreements with Oracle, Silver Lake and MGX to create a US joint venture majority-owned by American investors. @JMathieuReports has more https://t.co/KLkKXxejnx pic.twitter.com/NBnWiNbipV
— Bloomberg TV (@BloombergTV) December 18, 2025Oracle will act as the trusted security partner for the platform. The company will store sensitive US user data on secure US-based cloud infrastructure and oversee compliance audits.
The agreement follows US legislation passed in 2024 that required TikTok to divest its American operations or cease activity by January 19. President Donald Trump delayed enforcement and later said the proposed structure met divestiture requirements.
Read: ByteDance to Retain 50% TikTok US Profits in Trump-Brokered Deal
Under the arrangement, TikTok’s US operations will manage data security and content oversight. At the same time, global TikTok entities will continue to manage product interoperability and commercial services, including advertising and e-commerce.
TikTok’s parent ByteDance has agreed to sell over 80% of its US assets to investors including Oracle, Silver Lake and MGX to avoid a potential US ban. The deal is set to close in January, securing the app’s future for over 170 million American users.#TikTok #US #ByteDance… pic.twitter.com/uNrI9nrGm5
— CNBC-TV18 (@CNBCTV18News) December 19, 2025Political reactions remain mixed. Senator Elizabeth Warren raised concerns over transparency and investor influence, while Republican lawmakers have signalled plans to review the deal during congressional hearings in 2026.
Market analysts expect smooth regulatory approval, citing the White House’s direct involvement in shaping the agreement. If finalised as planned, the deal would close a chapter of prolonged legal and political battles over TikTok’s future in the United States.
