Overview
- TikTok and ByteDance signed binding agreements to form TikTok USDS Joint Venture LLC with Oracle, Silver Lake, and Abu Dhabi–based MGX as principal partners.
- Ownership outlined in internal memos gives 50% to the new investor consortium, 30.1% to affiliates of existing ByteDance investors, and 19.9% to ByteDance.
- The parties set January 22, 2026 as the target closing date, with the deal still subject to regulatory reviews and unresolved technical details, including algorithm control and operational separation.
- Oracle will act as a trusted security partner hosting U.S. user data and auditing compliance, and the recommendation algorithm is to be re-trained on U.S. data, according to the memo.
- The U.S. entity is described as independent with authority over data protection, algorithm security, content moderation, and software security, aiming to preserve service for more than 170 million U.S. users while lawmakers prepare further oversight.