The Grand Divorce: TikTok Signs Landmark Deal to Hand U.S. Control to Oracle-Led Group

The divestment plan for the U.S. version of TikTok, the short-video platform owned by ByteDance, has now entered its final stage. TikTok CEO Shou Zi Chew disclosed the progress in an internal memo to employees, outlining preparations already completed, including the establishment of a new company and the restructuring of equity ownership.

Specifically, the transaction parties have jointly formed a new entity named TikTok US Data Security Joint Venture LLC, which will be responsible for safeguarding TikTok’s U.S. data, ensuring algorithmic security, overseeing content moderation, and maintaining software integrity.

Under the proposed structure, U.S.-based consortiums and companies will collectively hold 45% of the new venture’s equity, affiliated entities of ByteDance’s existing investors will control 30%, and ByteDance itself will retain a 20% stake. As a result, effective control of the new company will rest primarily with U.S. investors.

Beyond data security, other aspects of TikTok’s U.S. operations will continue to be run by ByteDance. This means that separate TikTok entities in the United States will remain responsible for commercial activities such as e-commerce, advertising, and marketing, as well as for maintaining the platform’s global interoperability.

According to the current timetable, the agreement for the sale of TikTok’s U.S. operations is expected to be finalized no later than January 22, 2026. At that point, the protracted saga surrounding TikTok’s divestment would finally draw to a close. While ByteDance will inevitably incur some losses, the outcome is widely seen as considerably more favorable than earlier proposals.

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