TikTok Signs Deal: Oracle-Led Group Takes Majority Control of U.S. Operations in $14B Move

• TikTok has signed binding agreements to form a U.S. joint venture majority-owned by American investors, including Oracle Corp. (ORCL), Silver Lake, and MGX, valuing its U.S. operations at roughly $14 billion with closing expected on Jan. 22, 2026.
• The new independent entity will feature a majority-American board, control U.S. data protection, content moderation, and algorithm security, while ByteDance retains 19.9% ownership and licenses its recommendation technology.
• This deal addresses national security concerns from a bipartisan law mandating separation from ByteDance, potentially easing U.S.-China tech tensions, amid TikTok’s continued expansion into e-commerce with partners like Amazon.com Inc. (AMZN).

According to an internal memo reviewed by Bloomberg, TikTok has reached a significant milestone in addressing longstanding U.S. national security concerns over its ownership by Chinese parent ByteDance, with the signing of binding agreements to establish a new U.S. joint venture. The arrangement transfers majority control to American‑led investors while allowing the platform to continue serving its extensive user base, which encompasses half the country’s population.

The new entity will operate independently, managing data protection, content moderation, and algorithm security for U.S. users. It will be governed by a seven-member board with a majority of American directors. Ownership is structured such that 50% is allocated to new investors, including Oracle Corp. (ORCL), Silver Lake Management, and Abu Dhabi-based MGX each holding 15%; 30.1% is held by affiliates of certain existing ByteDance investors; and ByteDance retains 19.9%. The transaction values TikTok’s U.S. operations at roughly $14 billion and is scheduled to close on Jan. 22, 2026, subject to remaining approvals, including from Chinese regulators.

Central to TikTok’s success is its recommendation algorithm, which drives user engagement through personalized content feeds. Under the deal, ByteDance will license this technology to the U.S. entity, enabling it to retrain a new system using domestically stored data overseen by Oracle, TikTok’s existing cloud partner. This approach aims to mitigate risks of external influence while preserving the platform’s core functionality.

Oracle’s expanded role in securing U.S. user data and monitoring algorithmic processes builds on prior collaborations, though earlier proposals like Project Texas were deemed inadequate by regulators. The announcement prompted a positive market response, with Oracle shares rising more than 5% to $189.69 in after-hours trading.

The agreement stems from a bipartisan law enacted under the Biden administration requiring separation from ByteDance on national security grounds, amid fears of potential data access or content manipulation by Beijing. Multiple deadline extensions under the current administration facilitated negotiations, averting a ban. If completed, the deal could ease tensions in U.S.-China relations on technology and trade issues.

Meanwhile, TikTok has maintained robust growth in the U.S., expanding into e-commerce through partnerships such as with Amazon.com Inc. (AMZN) and hosting high-profile events like its inaugural TikTok Awards in Los Angeles. This momentum underscores the platform’s entrenched position in American digital culture and commerce. However, ByteDance’s retained stake and potential ongoing involvement in areas like profits and global operations have drawn scrutiny regarding full compliance with the law’s mandate for no operational ties.

WallStreetPit does not provide investment advice. All rights reserved.

• Bulenox: Get 45% to 91% OFF ... Use Discount Code: UNO
• Risk Our Money Not Yours | Get 50% to 90% OFF ... Use Discount Code: MMBVBKSM