TikTok’s business has been restructured in the United States

TikTok's business has finally reached a deal in the US through an agreement that was signed to restructure the business so that American investors will have a controlling stake in the platform’s U.S. operations. The company's CEO Shou Zi Chew dropped an internal memo to Bytedance's employees that a joint venture has been created involving ByteDance, and a group of investors including Oracle, Silver Lake, and MGX.

The TikTok US's Investors

Bytedance is Chinese parent company of TikTok.

Oracle is a U.S. cloud computing and tech giant founded by Larry Ellison.

MGX is an investment company that's based in Abu Dhabi, Saudi Arabia, but involved in the U.S. venture.

These investors are forming a new company called TikTok USDS Joint Venture LLC to run TikTok’s U.S. business. The joint venture is aimed at satisfying years of national security concerns from U.S. lawmakers about Chinese ownership.

The Ownership Breakdown

Oracle, Silver Lake, and Abu Dhabi–based MGX will together hold about 45% of the company, making them the largest single investor group. ByteDance will retain 20% minority stake, and its affiliates of existing investors will own close to one-third of the entire joint venture, not one-third of ByteDance’s stake.

Ownership Structures and Breakdown

However, it's important to note that the U.S. and allied investors will not own a majority of the shares, but they are now in control of the U.S. entity. The structure is designed to give them greater operational and governance control. ByteDance still retains a minority ownership stake, and the deal closing is expected by January 22, 2026 if regulatory conditions are met.

Oracle’s stock, which had been under pressure recently due to concerns about an AI bubble and the company’s reliance on a small number of major customers, rose by more than 5% in after-hours trading on Thursday.

Investopedia reported

Behind the TikTok Restructuring

For years, U.S. politicians and lawmakers have pushed to eliminate foreign control of TikTok’s U.S. operations. They argue that ByteDance’s Chinese ownership could pose a risk to data privacy and influence over content for Americans.

For this reason, they mandate that a majority-American board should oversee the U.S. TikTok unit, and all U.S. user data should be stored domestically, and managed under strict security controls. In addition to that, the law makers also mandate that the algorithm that drives TikTok’s recommendations should be retrained on U.S. data.

This structure is meant to limit foreign access and influence over Americans data. The lawmakers have imposed several deadlines for the social media company to comply, otherwise, it'll be banned in the US. Now, the joint venture has helped to prevent a possible ban that was looming under U.S. law unless ByteDance divested its U.S. operation.

Oracle has been chosen as the trusted security partner to host U.S. user data on its cloud systems and audit compliance. Meanwhile, the deal is still subject to regulatory approvals and closing conditions, but if finalized by January 2026, it will represent one of the most significant foreign tech ownership restructurings in U.S. history.