Hook paragraph
Deal Structure
TikTok announced Thursday that it will sell its U.S. assets to Oracle, Silver Lake and MGX. The transaction will give each American company roughly 15 % of the assets, totaling nearly 50 % of the U.S. holdings. The remaining assets will stay with affiliates of ByteDance’s existing investors.
Ownership and Data
ByteDance will keep 19.9 % of its ownership in the company. All U.S. user data will be stored under a system operated by Oracle.
Closing Timeline and Leadership Message
An internal memo shared with The Hill says the deal is expected to close on Jan. 22 2026. In the memo, TikTok CEO Shou Zi Chew wrote: “I want to take this opportunity to thank you for your continued dedication and tireless work.” He added, “Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world.” Chew also noted, “With these agreements in place, our focus must stay where it’s always been – firmly on delivering for our users, creators, businesses and the global TikTok community.”
Political Context
President Donald Trump signed an executive order in September to approve a deal that would keep TikTok available in the U.S. after the app briefly went dark. The agreement follows months of uncertainty for 170 million users and thousands of U.S. employees after lawmakers ordered TikTok to divest or sell its operations, citing a potential threat of Chinese manipulation of the platform’s algorithm.
Governance Changes
Under the new arrangement, TikTok’s operations will be managed by a seven-member majority-American board of directors, according to the company memo.
Key Takeaways
- TikTok sells U.S. assets to Oracle, Silver Lake, MGX, holding 15 % each.
- ByteDance retains 19.9 % ownership; U.S. data handled by Oracle.
- Deal slated to close on Jan. 22 2026.
The move marks a significant shift in TikTok’s U.S. strategy, aiming to address regulatory concerns while maintaining the platform’s global reach.
