At a Glance
- TikTok’s U.S. operations will be sold to a consortium of American investors, closing on January 22, 2026.
- The group-Oracle, Silver Lake, and MGX-will own 45% of the U.S. business, with ByteDance retaining a 20% stake.
- The move follows a three-month wait after President Trump signed an executive order approving the sale.
Why it matters: U.S. users may soon lose access to the app they use daily, and the deal reshapes data-security dynamics between the U.S. and China.
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The final chapter of TikTok’s battle with the U.S. government has reached a headline-making conclusion. A consortium of American investors will acquire a controlling stake in the platform’s U.S. operations, a deal that could alter how the app functions for millions of American users.
Who Owns TikTok in the U.S.?
A memo seen by News Of Philadelphia shows the investor group is made up of Oracle, private-equity firm Silver Lake, and investment firm MGX. They will hold 45% of the U.S. operation, while ByteDance will keep a 20% stake. Axios first reported the news, citing sources that estimate TikTok U.S. is valued at $14 billion – a figure also mentioned by Vice President JD Vance.
| Stakeholder | Ownership % |
|---|---|
| Oracle, Silver Lake, MGX | 45% |
| ByteDance | 20% |
| Others (Chinese stakeholders) | 35% |
The consortium is set to form the TikTok USDS Joint Venture LLC, which will oversee data protection, algorithm security, content moderation, and software assurance.
The New Joint Venture Structure
Oracle will act as the trusted security partner, auditing and ensuring compliance with National Security Terms. The company already provides cloud services for TikTok and manages user data in the U.S. Notably, Oracle had previously bid for TikTok in 2020.
A White House official had said Oracle would replicate and secure a new U.S. version of the algorithm, and the U.S.-based owners could lease the algorithm from ByteDance, which Oracle will then retrain. ByteDance will not have access to information about TikTok U.S. users or influence over the U.S. algorithm.
The deal was scheduled to close on January 22, 2026, a date that marks the end of a protracted negotiation period that began with an executive order in August 2020.
What It Means for U.S. Users
Bloomberg 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 about that platform remain largely unclear. Features, user experience, and how it will differ from the original app are still to be determined.
The uncertainty has left many users anxious. Some speculate that the new platform could be a rebranded version of TikTok with stricter data-handling protocols, while others fear a complete loss of the familiar interface.
Timeline of the TikTok U.S. Saga
| Date | Event |
|---|---|
| August 2020 | President Trump signs an executive order banning transactions with ByteDance. |
| September 2020 | Trump’s administration seeks to force a sale of TikTok U.S. to a U.S. company; Microsoft, Oracle, Walmart considered. |
| Late 2020 | A U.S. judge temporarily blocks the executive order, allowing TikTok to continue operating. |
| 2021-2022 | The Biden administration passes a bill against TikTok; President Biden signs it. |
| 2023 | TikTok sues the U.S. government, challenging the ban’s constitutionality. |
| 2024 | Trump changes his stance, aiming for a 50-50 ownership arrangement between ByteDance and a U.S. company. |
| December 2025 | TikTok officially signs a deal to divest a portion of its U.S. entity to the investor group. |
| January 22 2026 | Deal is set to close, ending the U.S. regulatory battle. |
Key Takeaways
- The sale of TikTok’s U.S. operations to a consortium of American investors marks the end of a multi-year dispute involving the U.S. government and ByteDance.
- Oracle will oversee security and compliance, while ByteDance will have no access to U.S. user data or algorithmic control.
- U.S. users may have to switch to a new platform once the deal closes, with specifics yet to be announced.
- The transaction, valued at $14 billion, reflects the high stakes of data sovereignty and national security concerns.
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The closure of this deal signals a shift in how technology companies navigate cross-border data issues and government scrutiny. As the final date approaches, all eyes will be on how the new U.S. ownership structure will operate and how it will affect the daily lives of millions of TikTok users.
