TikTok US deal update: Oracle-led joint venture set to launch in 2026 – what this means for ByteDance

TikTok US deal 2026: TikTok has taken a significant step toward separating from its Chinese parent company, ByteDance, announcing Thursday that it will be acquired by a group of buyers led by Oracle Corp, activating a long-discussed plan to restructure the company’s US operations, as per a report.

TikTok deal with Oracle moves forward under US joint venture plan

TikTok Chief Executive Officer Shou Chew informed employees in an internal memo reviewed by Bloomberg that TikTok and ByteDance have signed binding agreements to form a US joint venture that will be majority-owned by American investors, as per a Bloomberg report.

Chew reportedly said that he was “pleased to share some great news” and added that agreements with Oracle, Silver Lake and MGX have been signed, as quoted by Bloomberg.

TikTok US deal expected to close in January 2026

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

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New TikTok US entity to operate independently

According to the memo, once the deal closes, the new US joint venture will operate as an independent entity. It will be responsible for US data protection, content moderation and algorithm security. Chew said that the new US entity will also be “governed by a new seven-member majority-American board of directors,” as quoted by Bloomberg.

The structure described in Chew’s memo aligns with a framework previously announced by the White House in September, which at the time was awaiting approval from China. The memo did not reference China’s position on the transaction.

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Oracle, Silver Lake and MGX named as key buyers in TikTok US deal, ByteDance will retain minority stake

Under the proposed ownership arrangement, 50% of investors in TikTok US will be new. Oracle, Silver Lake and MGX, an Abu Dhabi-based investment firm, will each hold a 15% stake, as per the Bloomberg report. Affiliates of certain existing ByteDance investors will own 30.1%, while ByteDance itself will retain a 19.9% stake.

The terms outlined suggest that while the deal would reduce ByteDance’s control over TikTok’s US operations, it would not eliminate it entirely, leaving open the possibility for ByteDance to maintain oversight of key elements of the platform, which is used by roughly half of the US population.

FAQs

Who is leading the TikTok US deal?

The buyer group is led by Oracle, alongside Silver Lake and MGX.

What is the purpose of the TikTok US joint venture?

The joint venture is designed to separate TikTok’s US operations from ByteDance and increase American ownership.