TikTok US Control: Deal Reached with American Investor Group
- A landmark agreement resolves years of scrutiny over data security and national security concerns, allowing TikTok to continue operating in the United States under new ownership and oversight.
- TikTok has reached a deal to transfer a considerable portion of its U.S.
- The newly formed investor group comprises cloud computing giant Oracle, tech-focused private equity firm silverlake, and MGX, an Abu Dhabi-based investment firm specializing in artificial intelligence.
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TikTok Reaches Deal to Cede U.S. Operations to American Investors
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A landmark agreement resolves years of scrutiny over data security and national security concerns, allowing TikTok to continue operating in the United States under new ownership and oversight.
Last updated: December 19, 2025, 06:10:09 EST
The Deal: Ownership and Structure
TikTok has reached a deal to transfer a considerable portion of its U.S. operations to a group of American investors, effectively ending a years-long dispute with the U.S. government. The agreement, described as a “new TikTok U.S. joint venture” by ByteDance CEO Shou Chew in an internal memo viewed by techcrunch, aims to address national security concerns.
The newly formed investor group comprises cloud computing giant Oracle, tech-focused private equity firm silverlake, and MGX, an Abu Dhabi-based investment firm specializing in artificial intelligence. These companies will collectively own 45% of TikTok U.S.operations. ByteDance, TikTok’s parent company, will retain approximately 20% ownership, according to the memo. The new entity is officially named “TikTok USDS Joint Venture LLC.”
This structure is designed to create a U.S.-controlled entity while still allowing ByteDance to maintain a minority stake. The deal is intended to alleviate concerns about the potential for the Chinese government to access user data or influence the content displayed on the platform.
Background: The U.S.Government’s Concerns
The U.S. government, under both the Trump and Biden administrations, has expressed concerns about TikTok’s data security practices and its potential ties to the Chinese government. These concerns stemmed from china’s National Intelligence Law, wich compels organizations to cooperate with state intelligence agencies. The Council on Foreign Relations provides a detailed overview of these concerns.
In 2020, the trump management attempted to ban TikTok and WeChat, citing national security risks. While those bans were blocked by U.S. courts, the Biden administration continued to pursue options to address the concerns, including a potential forced sale of TikTok’s U.S. assets. The Committee on Foreign Investment in the United States (CFIUS) played a central role in negotiating the terms of the agreement.
Key Players
| Investor | Role | Focus |
|---|---|---|
| Oracle | Major Investor | Cloud Computing, Technology |
| Silverlake | Major Investor | Private Equity, Technology Investments |
| MGX | Major Investor | Artificial Intelligence, Investment |
| ByteDance | Minority Shareholder | Parent Company of TikTok |