TikTok has reached a landmark agreement with Oracle Corporation and a consortium of U.S. and allied investors to restructure its operations in the United States, significantly reducing the risk of a nationwide ban and advancing compliance with strict U.S. regulatory mandates.
The binding deal, formally signed on December 18, 2025, establishes a new U.S.-centric corporate structure that transfers effective control over TikTok’s American business to a majority-American investor group. The transaction is scheduled to close on January 22, 2026, just days ahead of the enforcement deadline imposed by U.S. law that could have otherwise forced a shutdown of the platform’s U.S. operations.
Key Elements of the Deal
Under the new agreement:
- A new joint venture, TikTok USDS Joint Venture LLC, will be created and become the operational hub for the platform’s U.S. business.
- Oracle, along with private equity firm Silver Lake and Abu Dhabi-based MGX, will each assume significant ownership stakes in the venture.
- ByteDance will retain a minority stake of 19.9 percent, consistent with U.S. ownership restrictions designed to mitigate foreign control concerns.
- Affiliates of existing ByteDance investors will hold the remaining share of the new U.S. entity.
Next Steps and Closing Conditions
Final regulatory approvals are still required, including consent from Chinese authorities given ByteDance’s headquarters in Beijing, before the transaction can formally close on January 22, 2026. Once completed, the new structure will chart a stabilizing path forward for TikTok’s operations in one of its most strategically important markets.
