TikTok CEO Shou Chew has informed employees that the company and its parent, ByteDance Ltd., have signed binding agreements to establish a U.S.-based joint venture that will be majority-owned by American investors.
In an internal memo seen by Bloomberg, Chew said he was “pleased to share some great news,” confirming that deals have been finalized with Oracle Corp., Silver Lake, and MGX. According to the memo, the transaction is expected to close on January 22, 2026.
Chew explained that once the deal closes, the U.S. joint venture will be formed on the existing TikTok US Data Security (USDS) structure and will operate as an independent entity. It will have full authority over key areas such as U.S. data protection, algorithm security, content moderation, and software assurance.
At the same time, TikTok’s global U.S.-based entities will continue to handle global product interoperability along with specific commercial functions, including e-commerce, advertising, and marketing.
According to AdAge, the memo outlined a deal aligned with the White House’s September framework, which is still pending approval from China, though Chew did not address Beijing’s stance. The ownership structure would bring in new investors, with Oracle, Silver Lake, and Abu Dhabi–based MGX each taking 15%, existing ByteDance investors holding 30.1%, and ByteDance retaining 19.9%.
The proposed structure has largely been communicated by the White House, following legislation signed last year under the Biden administration that framed the move as a national security measure. U.S. officials have long raised concerns over TikTok’s Chinese ownership, citing fears that the platform could be used to access data on American users or influence public discourse through its recommendation algorithms.
While the law initially set a sell-or-ban deadline for January this year, that timeline has been repeatedly extended since Donald Trump returned to office, with the latest extension pushing the deadline to January 2026.
