TikTok has signed agreements with three major investors—Oracle, Silver Lake, and Abu Dhabi-based MGX—to house its U.S. operations within a new joint venture. The entity is named TikTok USDS Joint Venture LLC, according to CNBC.
In a memo obtained by the outlet, TikTok CEO Shou Zi Chew outlined the joint venture structure for employees. The deal’s “closing date” is January 22nd. Under U.S. national security law—which the Supreme Court upheld in January—ByteDance was required to divest TikTok’s U.S. operations or face a ban. In September, President Donald Trump signed an executive order approving a proposed deal to keep TikTok operational by meeting requirements of a law originally enacted under former President Joe Biden.
Chew stated that the new venture will be “majority owned by American investors,” governed by a seven-member board with majority-American representation, and subject to terms protecting U.S. data and national security. The U.S. joint venture will hold 50% of its equity from a consortium including Oracle, Silver Lake, and MGX (15% each), while affiliates of existing ByteDance investors will hold nearly 30%, and ByteDance itself retains just under 20%.
The memo details that the entity will manage U.S. data storage via an Oracle-run system, ensure algorithm security, oversee content moderation, and uphold “software assurance” for American users. Chew emphasized that users and advertisers will “continue enjoying the same experience as today,” with no disruption to global audiences. TikTok’s algorithm—which powers its addictive video feed—will be retrained on U.S. user data to prevent outside manipulation, the memo states.
American officials have previously raised concerns that ByteDance’s algorithm risks manipulation by Chinese authorities, potentially enabling undetected content shaping. The algorithm has been central to security debates over TikTok, with U.S. regulations requiring any divestment to sever ties between the platform and ByteDance specifically.
