- ByteDance agrees to transfer control of TikTok’s US operations to a new majority-American joint venture
- Deal aims to address US national security concerns through data storage and governance measures
- Final approval will depend on regulatory scrutiny and implementation of operational safeguards
A deal to restructure TikTok’s US business looks likely to head off a long-threatened ban by shifting operational control to American investors while leaving parent company ByteDance with a minority stake. The agreement was first reported by Axios.
ByteDance has signed binding agreements to place TikTok’s US operations into a newly formed, majority-American joint venture, with a target closing date of 22 January 2026. The move follows years of bipartisan pressure in Washington over data security, algorithmic influence and concerns about Chinese government access to U.S. user information.
According to Reuters, the new entity – TikTok USDS Joint Venture LLC – will be controlled by an investor consortium led by Oracle, Silver Lake and Abu Dhabi-based MGX. Reuters reports the consortium will hold 80.1% of the venture, with ByteDance retaining a 19.9% stake.
Axios values the transaction at about $14bn and describes it as the culmination of regulatory efforts dating back to 2020. AP reports the venture will have a majority-American board and that Oracle will manage storage of US user data.
Alongside this provision around user data, governance and oversight will be based in the United States, and new controls will apply to the algorithm that powers TikTok’s For You feed. ByteDance will retain ownership of the source code and license it to the US entity rather than transferring it outright, preserving intellectual property while placing operational authority with American overseers.
The transaction addresses high political and commercial stakes. PhoneArena reports TikTok had about 1.59bn monthly active users worldwide in early 2025, including roughly 135.8m in the United States, and generated around $23bn in global revenue the previous year, largely from advertising. U.S. users spend an average of 52 minutes a day on the app, helping explain the intensity of regulatory scrutiny.
Lawmakers and regulators will now assess whether the structure meets the requirements of the 2024 US law that mandated divestiture or a shutdown, and whether a 19.9% ByteDance stake is sufficient to avoid the business being deemed foreign-controlled. Governance rules, algorithm licensing arrangements and the independence of content moderation will be central to that assessment.
Source: Noah Wire Services
- https://www.phonearena.com/news/tiktok-u.s.-assets-heading-to-american-led-consortium_id176739 – Please view link – unable to able to access data
- https://www.reuters.com/business/american-investor-consortium-acquire-tiktok-us-entity-axios-reports-2025-12-18/ – ByteDance, the Chinese owner of TikTok, has signed binding agreements to transfer control of TikTok’s U.S. operations to a joint venture involving American and global investors, notably Oracle, Silver Lake, and Abu Dhabi-based MGX. This agreement aims to prevent a U.S. ban on TikTok stemming from long-standing national security concerns. Under the arrangement, these investors will control 80.1% of the newly formed TikTok USDS Joint Venture LLC, while ByteDance retains a 19.9% stake. The new entity, valued at approximately $14 billion, will independently oversee U.S. data protection, algorithm security, and content moderation, while ByteDance will manage revenue-generating activities such as advertising and e-commerce separately. ([reuters.com](https://www.reuters.com/business/american-investor-consortium-acquire-tiktok-us-entity-axios-reports-2025-12-18/?utm_source=openai))
- https://apnews.com/article/2fdb915cac5b6d06907a5a2de6764376 – TikTok has finalized a deal with major U.S. investors—Oracle, Silver Lake, and MGX—to establish a new U.S.-based joint venture, allowing the platform to continue operations in the United States. Set to close on January 22, 2026, the new structure will see 50% of the company owned by this investment group, with ByteDance retaining a 19.9% stake and the remaining 30.1% held by affiliates of existing investors. A new majority-American board will be appointed, and U.S. user data will be stored locally under Oracle’s management to address national security concerns. ([apnews.com](https://apnews.com/article/2fdb915cac5b6d06907a5a2de6764376?utm_source=openai))
- https://www.axios.com/2025/12/18/tiktok-sale – TikTok has finalized a deal to divest its U.S. operations to a joint venture led by American investors, marking a major resolution to a years-long political and regulatory saga. The joint venture—set to assume control on January 22—will manage sensitive aspects such as U.S. data protection, algorithm security, content moderation, and software assurance. The deal, valued at approximately $14 billion, involves a consortium including Andreessen Horowitz, Silver Lake, and Oracle. This development follows prolonged pressure from U.S. officials to address national security concerns over TikTok’s Chinese parent company, ByteDance. The agreement was shaped after preliminary discussions between the White House and Beijing in September and represents a significant shift in American oversight of the popular social media platform. The saga dates back to 2020, when then-President Trump demanded ByteDance divest TikTok’s U.S. assets. ([axios.com](https://www.axios.com/2025/12/18/tiktok-sale?utm_source=openai))
- https://www.reuters.com/business/oracle-silver-lake-mgx-be-main-investors-tiktok-us-with-45-ownership-cnbc-2025-09-25/ – A group of investors, including Oracle, Silver Lake, and Abu Dhabi-based MGX, are set to acquire approximately 50% of TikTok U.S., according to a source familiar with the matter. This move comes in response to a 2024 U.S. law requiring ByteDance, TikTok’s Chinese parent company, to divest its U.S. operations or face a shutdown by January 2025. ByteDance will retain less than 20% ownership in TikTok U.S., while current shareholders, including Susquehanna International Group, General Atlantic, and KKR, will hold around 30%. The remaining ownership and governance structure will largely be influenced by U.S. entities, with Americans expected to occupy six out of seven board seats on the new TikTok U.S. entity. Oracle and Silver Lake have not commented on the deal, and details may still evolve due to high investor interest. MGX, a partner of Silver Lake backed by the UAE’s national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, is also poised to play a significant role in the investment. President Trump is anticipated to approve the agreement, resolving prolonged uncertainty over TikTok’s fate in the U.S. ([reuters.com](https://www.reuters.com/business/oracle-silver-lake-mgx-be-main-investors-tiktok-us-with-45-ownership-cnbc-2025-09-25/?utm_source=openai))
- https://www.retailnews.asia/groundbreaking-deal-tiktoks-u-s-assets-acquired-by-american-led-consortium/ – ByteDance, the original Chinese parent company, will retain a 19.9% stake, ensuring that the new venture does not fall under the classification of “foreign controlled”. ([retailnews.asia](https://www.retailnews.asia/groundbreaking-deal-tiktoks-u-s-assets-acquired-by-american-led-consortium/?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
✅ The narrative is current, with the deal announced on December 18, 2025, and set to close on January 22, 2026. ([apnews.com](https://apnews.com/article/2fdb915cac5b6d06907a5a2de6764376?utm_source=openai))
Quotes check
Score:
10
Notes:
✅ No direct quotes are present in the provided text, indicating original content.
Source reliability
Score:
8
Notes:
⚠️ The report originates from PhoneArena, a technology news outlet. While it provides detailed information, its reputation is not as established as major news organisations. ([phonearena.com](https://www.phonearena.com/news/tiktok-u.s.-assets-heading-to-american-led-consortium_id176739?utm_source=openai))
Plausability check
Score:
9
Notes:
✅ The claims align with recent reports from reputable sources, including the Associated Press and Reuters, confirming the deal’s details. ([apnews.com](https://apnews.com/article/2fdb915cac5b6d06907a5a2de6764376?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
✅ The narrative is fresh, with no recycled content identified. While sourced from PhoneArena, the information is corroborated by reputable news outlets, enhancing its credibility. The absence of direct quotes suggests originality.
Register for Editor’s picks
Stay ahead of the curve with our Editor's picks newsletter – your weekly insight into the trends, challenges, and innovations driving the future of digital media.
