The deal that sees TikTok‘s US operations being sold to an investment group that includes Oracle, Silver Lake, and UAE-based company MGX is set to close January 22, 2026, reports Axios.
“TikTok USDS Joint Venture LLC” that includes the three companies will take a 45% piece of TikTok, while ByteDance will hold on to close to 20%. Existing investors will continue to hold the remaining 35% of the company.
The U.S. group will handle U.S. data protection and content moderation, while also maintaining algorithm security. The group will also be required to retrain the social network’s content recommendation algorithm on U.S. user data to “ensure the content feed is free from outside manipulation.” Oracle will be charged with auditing and validating compliance with National Security Terms.
USDS Joint Venture will “operate as an independent entity” that has authority over U.S. data protection, while TikTok’s global U.S. entities will manage global product interoperability along with e-commerce, advertising, and marketing.
The sale means TikTok will continue to be allowed to operate in the United States while complying with the 2024 Protecting Americans From Foreign Adversary Controlled Applications Act. US President Donald Trump first issued an executive order demanding that ByteDance sell its U.S. operations back in 2020. Congress passed a law in 2024 to force a ban of the app unless it sold. The Supreme Court in January upheld that law. Trump has repeatedly postponed the enforcement of the ban via multiple executive orders while a sale was negotiated.