At a Glance
> At a Glance
> – TikTok’s U.S. operations sold to American investors, with Oracle, Silver Lake, and MGX owning 45%.
> – ByteDance keeps ~20% of the U.S. entity.
> – Deal closes on Jan 22 2026.
> – Why it matters: U.S. users face a platform transition and data security changes.
A landmark deal has finalized the sale of TikTok’s U.S. operations to a consortium of American investors. The agreement, signed by President Trump and approved by the White House, transfers majority ownership to Oracle, Silver Lake, and MGX while leaving ByteDance with a minority stake. The transition will reshape how U.S. users interact with the platform and how data is handled.
Deal Structure and Ownership
Under the terms, the newly formed TikTok USDS Joint Venture LLC will oversee all U.S. operations, including data protection, algorithm security, content moderation, and software assurance. Oracle will act as the trusted security partner, auditing compliance with National Security Terms, and will replicate and secure a new U.S. version of the algorithm.
Key ownership stakes
| Investor Group | Stake |
|---|---|
| Oracle, Silver Lake, MGX | 45% |
| ByteDance | ~20% |
Timeline of the Sale
The sale followed a series of executive orders and legal battles. In August 2020, President Trump banned transactions with ByteDance, but a U.S. judge temporarily blocked the order, letting TikTok continue. After the Biden administration passed an anti-TikTok bill and Trump extended the ban deadline, he approved the sale to American investors in a late-2023 executive order.
- Aug 2020 – Trump orders ban on ByteDance transactions.
- Jan 2021 – Judge blocks order; TikTok remains operational.
- 2023 – Biden administration passes anti-TikTok bill; Trump signs.
- Dec 2023 – Trump extends ban deadline and signs sale order.
- Jan 2026 – Deal scheduled to close.
Implications for U.S. Users
News Of Los Angeles reports that once the deal is finalized, the TikTok app will be discontinued in the U.S. Users will need to transition to a new platform, though details are unclear. ByteDance will not have access to U.S. user data or influence over the U.S. algorithm, ensuring data separation.
ByteDance stated:
> “ByteDance will not have access to information about TikTok’s U.S. users or any influence over the U.S. algorithm.”
White House Official said:
> “Oracle will replicate and secure a new U.S. version of the algorithm, and the U.S.-based TikTok owners could lease the algorithm from ByteDance, which Oracle will then retrain.”
Key Takeaways
- TikTok’s U.S. operations are sold to American investors, with majority control by Oracle, Silver Lake, and MGX.
- ByteDance retains a minority stake and no access to U.S. user data or algorithm.
- The deal closes on Jan 22 2026, after which the U.S. app will be discontinued and users must move to a new platform.
The sale marks a significant shift in how TikTok operates in the United States, balancing national security concerns with business interests while preparing U.S. users for a major change in their digital experience.
