TikTok Says it has Signed Deals for New U.S. Joint Venture

TikTok’s long-delayed plan to separate from its Chinese parent, ByteDance Ltd., moved forward Thursday after the video-sharing company said it has agreed to be bought by a group of investors led by Oracle Corp, Alexandra S. Levine reported for Bloomberg News.

The US joint venture will operate as an independent entity responsible for data protection, content moderation, and algorithm security within the United States. (Photo: TikTok US X)

TikTok Chief Executive Officer Shou Chew told employees that the company and ByteDance have signed binding agreements to form a US joint venture majority-owned by American investors, according to an internal memo reviewed by Bloomberg.

Chew wrote that he was “pleased to share some great news” and said agreements with Oracle, Silver Lake Management, and MGX have been finalized.

The deal is expected to close on Jan. 22, 2026, though Chew cautioned that “there’s more work to be done” before completion.

Once closed, the US joint venture will operate as an independent entity responsible for data protection, content moderation, and algorithm security within the United States.

The new entity will be governed by a seven-member board of directors with a majority of American members, Chew said.

Oracle shares jumped nearly 6 percent in after-hours trading.

The memo outlined a transaction consistent with what the White House announced in September, which was pending approval from China at the time and valued TikTok’s US operations at roughly $14 billion.

Chew did not address China’s stance on the deal, which would reduce—but not eliminate—ByteDance’s control over TikTok’s US business.

Under the arrangement, 50 percent of TikTok US investors will be new: Oracle, Silver Lake, and MGX—an Abu Dhabi–based investment firm—will each hold 15 percent stakes; 30.1 percent will be owned by affiliates of existing ByteDance investors; and 19.9 percent will remain with ByteDance.