Overview
- ByteDance and TikTok executed binding agreements to place U.S. operations in a new joint venture backed by Oracle, Silver Lake and MGX.
- The ownership plan allocates 50% to the new investor consortium (15% each to Oracle, Silver Lake and MGX), 30.1% to affiliates of existing ByteDance investors and 19.9% retained by ByteDance.
- The companies target a January 22, 2026 closing, with completion still contingent on final approvals, security implementations and other closing conditions.
- Oracle will manage local storage of U.S. user data and audit compliance, the recommendation algorithm will be retrained on U.S. data, and the venture will control moderation and policy in the country.
- The entity, described as TikTok USDS Joint Venture LLC, will have a seven-member board with a U.S. majority and is intended to avert a ban affecting roughly 170 million U.S. users.