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6h ago

TikTok Signs Binding Deal to Shift U.S. App to Oracle-Led Venture

Chinese approval remains the key hurdle before the planned Jan. 22 closing.

SYDNEY, AUSTRALIA - DECEMBER 07: A 7-year-old teenage boy and a 11-year-old teenage girl look at their iPad screen with TikTok logo is displayed on December 07, 2025 in Sydney, Australia. The Online Safety Amendment (Social Media Minimum Age) Act 2024 requires social media platforms, including TikTok, Instagram, Facebook, YouTube, Snapchat, X, Reddit, Threads, Twitch, and Kick to implement age-verification systems and take reasonable steps to prevent account creation by users under 16, with non-compliant platforms facing penalties of up to A$50 million. (Photo by George Chan/Getty Images)
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FILE - In this July 21, 2020 file photo, a man opens social media app 'TikTok' on his cell phone, in Islamabad, Pakistan. (AP Photo/Anjum Naveed, File)
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Overview

  • TikTok and ByteDance signed binding agreements forming TikTok USDS Joint Venture LLC to operate the U.S. app, targeting a Jan. 22, 2026 closing.
  • Oracle, Silver Lake and MGX will each own 15%, affiliates of existing ByteDance investors about 30.1%, and ByteDance 19.9%.
  • The new U.S. entity will control data protection, algorithm security, content moderation and software assurance, and will retrain the recommendation algorithm on U.S. user data.
  • Oracle will act as the trusted security partner auditing compliance, with governance by a seven-member board with a U.S. majority.
  • The deal still awaits Chinese regulatory sign-off and clarity on ongoing technology licensing with ByteDance, and it is structured to satisfy a 2024 divest-or-ban law that preserves service for more than 170 million U.S. users.