• TikTok has signed a deal to sell its U.S. operations to an American-led consortium.
• The joint venture will be majority-owned by Oracle, Silver Lake, and MGX.
• The deal is set to close on January 22, 2026, ensuring compliance with U.S. national security laws.

ByteDance's TikTok has entered into a binding agreement to sell its U.S. entity to a joint venture primarily controlled by American investors. This deal, confirmed by TikTok CEO Shou Chew, aims to alleviate longstanding national security concerns over data privacy. The finalized sale is scheduled to close on January 22, 2026, marking a significant shift in ownership of the popular app, which has over 170 million American users, according to Reuters, Channel News Asia, and ABC News.

The consortium includes significant stakes from Oracle, Silver Lake, and MGX, collectively owning 45% of the new entity while ByteDance will retain about 20%. Analysts predict this restructuring will provide necessary governance to address U.S. data security laws established recently, as reported by CBS News and Los Angeles Times. This deal comes following legislative actions requiring TikTok to divest from its Chinese parent company.

The transition will incorporate a majority-American board overseeing U.S. operations, reinforcing compliance with national regulations. The app’s renowned algorithm will be introduced in the U.S. under this new framework, subject to stringent oversight by American auditors from Oracle, according to South China Morning Post, NPR, and BBC.