TikTok's U.S. operations have been spun off into a new joint venture led by Oracle and Silver Lake, U.S. officials confirmed Thursday. The agreement between the United States and China closes ahead of a January 23 enforcement deadline. A new U.S.-governed entity will oversee data protection, content moderation, and algorithm security for TikTok's American users.
TikTok US Deal Finalized
A White House official said the United States and China have finalized a deal covering TikTok's U.S. business. The agreement transfers TikTok's U.S. operations to a consortium led by Oracle and Silver Lake. Fox Business reported the joint venture has been formally established, and CNN reported it has announced its leadership team. In a company statement, TikTok said the new structure is intended to address U.S. national security concerns.
The closing comes before a January 23 deadline tied to a 120 day enforcement pause in a 2025 executive order. That September executive order, titled "Saving TikTok While Protecting National Security," temporarily suspended enforcement of a divest-or-ban law targeting TikTok.
Key Ownership and Governance Details
- ByteDance retains just under 20% of TikTok's U.S. business.
- Oracle, Silver Lake, and MGX each hold 15% stakes in the new U.S. entity.
- MGX is described as an Abu Dhabi-based artificial intelligence investment firm.
- Additional investors include Susquehanna, Dragoneer, and DFO, Michael Dell's family office.
- The joint venture is governed by a seven member board with an American majority.
- The board oversees data protection, content moderation, and algorithm security for U.S. operations.
- Adam Presser, formerly head of operations and trust and safety, is named CEO of the U.S. joint venture, TikTok said.
- Will Farrell, who led privacy and security for the effort, becomes Chief Security Officer.
A December internal memo from CEO Shou Chew outlined a similar ownership structure after the parties signed binding agreements.
Vice President JD Vance said in September that the deal would value TikTok's U.S. operations at roughly 14 billion dollars. He made the estimate while discussing the transaction's terms, but the final amount received by ByteDance has not been disclosed. The 2025 executive order describes U.S. oversight of the recommendation algorithm, including retraining and monitoring requirements.
Background and Official Documents
President Joe Biden signed a law in 2024 requiring ByteDance to divest TikTok's U.S. business or face a national ban. In 2025, the Supreme Court upheld that law, clearing the way for enforcement. TikTok briefly went offline two days after the ruling. President Trump then signed an executive order keeping the app available during sale negotiations.
In September 2025, the White House outlined a framework requiring majority American ownership of TikTok's U.S. operations. That framework allowed ByteDance to retain a minority stake while transferring control of data and governance to U.S.-based owners. A related White House fact sheet stated that TikTok had 170 million Americans using the app at that time.
Federal scrutiny of TikTok's ownership began in 2020, when the Trump administration first issued divestment orders. An August 2020 executive order initially gave ByteDance 45 days to sell TikTok's U.S. operations or face restrictions. Subsequent negotiations and court challenges delayed any forced sale until Congress passed the 2024 law.
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