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4h ago

TikTok Signs Binding Deal to Shift U.S. Operations to American-Led Joint Venture

Oracle is designated security partner, with a Jan. 22 closing targeted to satisfy the U.S. divest-or-ban law.

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

  • Oracle, Silver Lake and MGX will each hold 15% of the new U.S. venture, affiliates of existing ByteDance investors about 30.1%, and ByteDance 19.9%, under a seven-member majority-American board.
  • The U.S. joint venture, built on the TikTok USDS organization, will control U.S. data protection, algorithm security, content moderation and software assurance.
  • Oracle will host U.S. user data and serve as the “trusted security partner,” auditing and validating compliance with national security terms.
  • The venture plans to retrain TikTok’s recommendation algorithm on U.S. data to keep the feed free from outside manipulation.
  • The entity, to be called TikTok USDS Joint Venture LLC, is expected to close Jan. 22 and still requires implementation steps and external approvals, including sign-off from Chinese authorities.