TikTok has signed agreements with three major investors – Oracle, Silver Lake, and Abu Dhabi-based MGX – to house the social media company’s U.S. operations in a new joint venture. “The entity is named TikTok USDS Joint Venture LLC,” CNBC stated. In a memo obtained by the outlet, TikTok CEO Shou Zi Chew informed employees of the joint venture. The deal’s “closing date” is January 22nd. TikTok’s Chinese owner ByteDance inks deal to sell US operations to American investors, including Oracle https://t.co/rLwqUyXEEV pic.twitter.com/8fcCQ6rAXG — New York Post (@nypost) December 18, 2025 CNBC explained further: Under a national security law, which the Supreme Court upheld in January, China-based ByteDance was required to divest TikTok’s U.S. operations or face an effective ban in the country. In September, President Donald Trump signed an executive order approving a proposed deal that would keep TikTok operational in the U.S. by meeting the requirements of a law originally signed by former President Joe Biden. Chew noted that the new TikTok joint venture would be “majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and U.S. national security.” The U.S. joint venture will be 50% held by a consortium of new investors, including Oracle, Silver Lake and MGX, with 15% each. Just over 30% will be held by affiliates of certain existing investors of ByteDance, and almost 20% will be retained by ByteDance, the memo said. The TikTok chief said the entity will be responsible for protecting U.S. data, ensuring the security of its prized algorithm, content moderation and “software assurance.” “I want to take this opportunity to thank you for your continued dedication and tireless work. Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world,” Chew wrote in the memo, according to the Associated Press. “With these agreements in place, our focus must stay where it’s always been—firmly on delivering for our users, creators, businesses and the global TikTok community,” Chew added. “Oracle will serve as the trusted security partner, auditing and validating compliance with national security terms,” Mario Nawfal noted. BREAKING: TIKTOK SIGNS DEAL TO SELL U.S. OPERATIONS, YEARS-LONG SAGA FINALLY ENDS Trump got it done. TikTok has signed a deal to divest its U.S. entity to a joint venture controlled by American investors, according to an internal memo obtained by Axios. The agreement is… pic.twitter.com/aHnJrk3FVD — Mario Nawfal (@MarioNawfal) December 18, 2025 More from the Associated Press: U.S. user data will be stored locally in a system run by Oracle. The memo said U.S. users will continue “enjoying the same experience as today” and advertisers will continue to serve global audiences with no impact from the deal. TikTok’s algorithm — the secret sauce that powers its addictive video feed — will be retrained on U.S. user data to “ensure the content feed is free from outside manipulation,” the memo said. The U.S. venture will also oversee content moderation and policies within the country. American officials have previously warned that ByteDance’s algorithm is vulnerable to manipulation by Chinese authorities, who can use it to shape content on the platform in a way that’s difficult to detect. The algorithm has been a central issue in the security debate over TikTok. China previously maintained the algorithm must remain under Chinese control by law. But the U.S. regulation passed with bipartisan support said any divestment of TikTok must mean the platform cuts ties — specifically the algorithm — with ByteDance.