A deal for TikTok's U.S. operations is expected to close on January 22, 2026, creating a new entity called TikTok USDS Joint Venture LLC. A consortium including Oracle, Silver Lake, and Abu Dhabi's investment firm MGX will acquire a majority stake to address U.S. national security concerns. TikTok's Chinese parent company, ByteDance, will retain a minority stake of 19.9%.
Under the agreement, which follows the passage of the "Protecting Americans from Foreign Adversary Controlled Applications Act," Oracle will become the designated security partner. This role involves storing all U.S. user data on Oracle's cloud systems and overseeing data security and content moderation. The deal allows TikTok to continue operating in the U.S., avoiding a ban that was mandated by the legislation. While financial terms were not fully disclosed, ByteDance had previously sought a valuation of around $60 billion for the U.S. business.