TikTok signs deal to spin off US operations under mostly American ownership
Note: AI technology was used to generate this article’s audio.
- TikTok moves closer to creating a US-based joint venture with American investors.
- Oracle, Silver Lake, and Emirati-backed MGX to hold majority of new US entity.
TikTok has signed an agreement to spin off its US operations into a new entity controlled primarily by American investors, CEO Shou Chew announced in a memo to employees Thursday.
The move, backed by President Donald Trump, brings the app closer to securing its long-term future in the United States.
The transaction responds to a law passed last year requiring the US version of TikTok to separate from its Chinese parent company, ByteDance, or face a ban in the country. Trump previously delayed enforcement to allow negotiations for a US ownership structure.
- Details of the new US entity -
Chew said in the memo, obtained by CNN, “We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
Under the agreement, the new US joint venture will be 50 percent owned by a consortium of tech company Oracle, private equity firm Silver Lake, and Emirati-backed MGX. More than 30 percent will be held by affiliates of existing ByteDance investors, and ByteDance will retain 19.9 percent, Chew said.
The US platform will handle content moderation and user data storage locally, with Oracle overseeing data security. TikTok’s global entity, still controlled by ByteDance, will continue to manage e-commerce, advertising, and marketing.
- Pending approvals and timeline -
The deal requires regulatory approvals in both the US and China. While Trump said Chinese President Xi Jinping supports the transaction, Beijing has not officially confirmed. The agreement is expected to close by January 22, 2026.
When asked about China’s approval, Chinese foreign ministry spokesperson Guo Jiakun said, “As for the specific question, I’d refer you to the competent Chinese authorities. China’s position on the TikTok issue is consistent and clear.”
