After years of political pressure and regulatory uncertainty, TikTok’s long-running ownership saga in the United States is finally nearing its conclusion.
ByteDance, the Chinese parent company of TikTok, has signed an agreement to sell a majority stake in its US operations to a group of investors, effectively reshaping who controls one of the world’s most influential social media platforms.
TikTok CEO Shou Zi Chew informed employees that the new structure would establish a clear separation between the app’s American and Chinese operations. Under the deal, the US business will operate as an independent entity with full authority over data protection, algorithm security, content moderation, and software assurance.
Chew stressed that these changes are designed to address long-standing national security concerns raised by Washington. The transaction is expected to close on January 22, 2026, bringing an end to a dispute that began in earnest in 2020, when then US President Donald Trump first attempted to ban TikTok over fears that user data could be accessed by the Chinese government.
Since then, TikTok has faced repeated threats of prohibition, congressional scrutiny, and evolving legislation aimed at curbing foreign influence over digital platforms. Under the new arrangement, TikTok will effectively exist as two separate entities: one for China and one for the United States. The American arm will be known as TikTok USDS Joint Venture LLC.
This entity will be majority-owned by a consortium of US and allied investors, including Oracle, private equity firm Silver Lake, and Abu Dhabibased investment company MGX. Each of these investors will hold a 15 per cent stake in the joint venture. Oracle’s involvement is particularly notable.
The company, led by billionaire Larry Ellison, a known ally of Donald Trump, has already been closely associated with TikTok’s US data storage efforts. Its expanded role signals Washington’s desire to keep both data and technological oversight firmly within trusted hands.
The deal values TikTok at approximately $14 billion, a figure that is lower than earlier market estimates but reflects the regulatory constraints placed on the sale. Existing ByteDance investors will retain a combined stake of 30.1 per cent in the new entity, while ByteDance itself will hold about 19.9 per cent.
This ownership cap is critical. It ensures compliance with the Protecting Americans from Foreign Adversary Controlled Applications Act, which bars any Chinese company or individual from owning more than 20 per cent of TikTok’s US operations.
By staying below this threshold, ByteDance formally relinquishes control while maintaining a limited financial interest. In practical terms, the agreement marks a decisive shift.
TikTok’s US operations will now be governed by American and allied investors, addressing security concerns while allowing the platform to continue operating in its most lucrative market.
For users, the app may feel unchanged, but behind the scenes, control of TikTok in the US has fundamentally been rewritten.