TikTok is Finally Being Sold to US to Avoid Ban

WASHINGTON: TikTok has finalized an agreement to sell a sufficient stake in its US operations to comply with the country’s divest-or-ban law, setting the stage for the platform to continue operating in the United States.

The deal, first reported by Axios, The Hollywood Reporter, and CNBC, was confirmed in a memo sent by CEO Shou Zi Chew to employees on Thursday. TikTok is targeting January 22, 2026, as the closing date for the transaction.

Under the agreement, a new entity called TikTok USDS Joint Venture LLC will be created. Ownership of the US joint venture will be split among new American investors, existing ByteDance investors, and ByteDance itself.

Ownership Structure of TikTok USDS

According to the memo, 50% of the US joint venture will be held by a consortium of new investors. This group includes Oracle, Silver Lake, and MGX, each taking a 15% stake.

Affiliates of certain existing investors in ByteDance will hold 30.1%, while ByteDance itself will retain a 19.9% ownership stake.

TikTok briefly went offline in the US in January after failing to meet earlier divestment requirements. US President Donald Trump later granted TikTok multiple extensions to finalize a deal.

Read more: TikTok Launches “Nearby Feed” Feature to Explore Local Content

The US and China reached a framework agreement in September, which led to another extension that expired on December 16. The newly signed agreements are intended to satisfy the requirements laid out in an executive order signed on September 25, 2025.

Control Over Data, Algorithms, and Content

The memo states that the US joint venture will operate with a new seven-member board of directors, the majority of whom will be American. The entity will have authority over data protection, algorithm security, content moderation, and software assurance for US users.

TikTok said the joint venture will retrain its content recommendation algorithm using US user data to ensure the feed is free from outside manipulation. Sensitive US user data will be stored in a secure cloud environment in the United States operated by Oracle, which will also serve as the trusted security partner responsible for auditing and validating compliance with national security requirements.

Operational Responsibilities After Closing

Once the transaction is completed, TikTok USDS Joint Venture LLC will function as an independent entity built on the existing TikTok US Data Security organization. It will have exclusive authority to provide assurances that US user data, content, and software are secure.

TikTok’s global US entities will continue to handle global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing. The company said the changes will not affect advertisers or the user experience for the platform’s more than 170 million American users.

The transaction is expected to close within 120 days of the executive order, pending final regulatory approvals.