The TikTok US sale is finally happening
is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.
TikTok has finalized a deal to sell enough of its US business satisfy the divest-or-ban law, as initially reported by Axios, The Hollywood Reporter, and CNBC. According to a memo sent from CEO Shou Zi Chew to employees (included in full below) on Thursday, they are targeting a closing date of January 22nd, 2026. Once the deal is done, he writes that ownership stakes in TikTok USDS Joint Venture LLC will break down as follows:
Specifically, the U.S. joint venture will be 50% held by a consortium of new investors, including Oracle, Silver Lake and MGX with 15% each; 30.1% held by affiliates of certain existing investors of ByteDance; and 19.9% will be retained by ByteDance.
After TikTok briefly went dark in the US in January, President Donald Trump granted TikTok a series of extensions to come up with a deal to sell a stake in its US-based operations. The US and China finally agreed on a “framework” for a deal in September, leading to yet another extension that expired on December 16th.
The letter notes that the new joint venture will oversee its own algorithm, “retraining the content recommendation algorithm on U.S. user data to ensure the content feed is free from outside manipulation,” as well as content moderation, data security, and deployment of the US version of the app and platform.
Update on our U.S. business
I am pleased to share some great news. 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.I want to take this opportunity to thank you for your continued dedication and tireless work. Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world.
With these agreements in place, our focus must stay where it’s always been—firmly on delivering for our users, creators, businesses and the global TikTok community.
There’s more work to be done as we move towards the closing date of January 22, 2026. Within this timeframe, we will continue to update you on the process and other details.
In the meantime, I have outlined key terms of the agreements below.
Shou
ByteDance and TikTok have signed binding agreements with three managing investors, Oracle Corporation, Silver Lake, and MGX, to form a new TikTok U.S. joint venture named TikTok USDS Joint Venture LLC. Pursuant to the Executive Order signed by U.S. President Donald J. Trump on September 25, 2025, the agreements specify that the U.S. joint venture will be majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and U.S. national security.
Specifically, the U.S. joint venture will be 50% held by a consortium of new investors, including Oracle, Silver Lake and MGX with 15% each; 30.1% held by affiliates of certain existing investors of ByteDance; and 19.9% will be retained by ByteDance.
Through comprehensive security measures, more than 170 million Americans will continue to discover, create, and connect on the platform, enjoying the same experience as today. Advertisers will continue to connect with global audiences with no impact.
The U.S. joint venture will be responsible for U.S. data protection, algorithm security, content moderation, and software assurance. It will also have the exclusive right and authority to provide assurances that content, software, and data for American users is secure. A trusted security partner will be responsible for auditing and validating compliance with the agreed upon National Security Terms, and Oracle will be the trusted security partner upon completion of the transaction.
The U.S. joint venture will oversee:
Data Protection: safeguarding sensitive U.S. user data, which will be stored in a trusted and secure cloud environment in the United States run by Oracle.
Algorithm Security: retraining the content recommendation algorithm on U.S. user data to ensure the content feed is free from outside manipulation.
Content Moderation: ultimate decision-making authority for reviewing and approving all content moderation and related policies within the United States.
Software Assurance: deployment and integrity of the U.S. application software and platform.
The transaction will be completed no later than 120 days from the date of the Executive Order. Upon the closing, the U.S. joint venture, built on the foundation of the current TikTok U.S. Data Security (USDS) organization, will operate as an independent entity with authority over U.S. data protection, algorithm security, content moderation and software assurance, while TikTok global’s U.S. entities will manage global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing.
Update, December 18th: Added details from the memo and its full text.
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