Overview
- ByteDance signed binding agreements on Dec. 18 to place TikTok’s U.S. operations in a new joint venture led by Oracle, Silver Lake and MGX, with a planned closing around Jan. 22, 2026.
- Reported ownership stakes vary widely, with estimates from under 50% to about 80% for the investor group and indications that ByteDance could retain up to 19.9%.
- An internal memo says the venture would operate independently on U.S. data protection, algorithm security, content moderation and software assurance, with Oracle entrusted to host and safeguard U.S. user data in its American cloud.
- Control of the recommendation algorithm remains unclear, with multiple outlets reporting a likely license from ByteDance rather than a transfer and some accounts saying ByteDance could keep a significant share of profits.
- The transaction still requires Chinese regulatory approval and is drawing scrutiny over potential content-moderation shifts, even as private-market reports peg ByteDance’s valuation near $500 billion.