TikTok to Divest U.S. Operations in Deal with Oracle, Silver Lake, MGX – Ticker: N/A

TikTok has finalized a deal to divest its U.S. operations to a consortium of American investors, including Oracle, Silver Lake, and MGX, ahead of a January 22, 2026, closing date. The transaction, approved by President Donald Trump and Chinese leader Xi Jinping, establishes the TikTok USDS Joint Venture LLC to oversee data security, algorithm oversight, and content moderation under U.S. national security terms. The investor group will hold 45% of the U.S. entity, with ByteDance retaining nearly 20%. Oracle will serve as the trusted technology partner, managing cloud infrastructure and auditing compliance, while also retraining a U.S.-based version of TikTok’s algorithm. ByteDance will have no access to U.S. user data or control over the algorithm. The deal values TikTok’s U.S. operations at approximately $14 billion, according to Axios and Vice President JD Vance. Users may transition to a new platform post-closing, though details remain unclear. This follows years of legal battles and executive actions, including a 2020 ban attempt under Trump and subsequent challenges under Biden. The agreement resolves longstanding concerns over data sovereignty and foreign influence.