TikTok has agreed to sell its U.S. unit to a group of American investors, fulfilling its obligations under legislation compelling the platform to either sell its American operation or face a ban on operating in the U.S.
TikTok is selling its U.S. entity to a joint venture controlled by Oracle, Silver Lake, and the Abu Dhabi-based MGX, Axios first reported, citing an internal memo. Those entities will own a 45 percent stake in the venture, named TikTok USDS Joint Venture LLC. Chinese parent company ByteDance will retain a 20 percent stake, and affiliates of ByteDance investors will hold nearly a third of the company.
The U.S. venture will handle data protection, algorithm security, content moderation, and software assurance. The TikTok agreement is set to close on January 22, the memo says.
“I want to take this opportunity to thank you for your continued dedication and tireless work,” TikTok CEO Shou Chew wrote in the memo.
“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. 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.”
The development follows an executive order that President Donald Trump signed in September authorizing TikTok to sell its U.S. entity to a group of American investors including Oracle and Silver Lake. Trump repeatedly pushed back enforcement of a bipartisan law then–President Joe Biden signed ordering TikTok to either sell its U.S. operation or face a ban in January 2025.
The Supreme Court upheld the TikTok legislation after the company challenged it, giving Trump the green light to oversee a deal. Trump delayed the law’s enforcement as his administration worked with U.S. partners and the Chinese government to broker a deal.
The legislation prompting TikTok to sell its U.S. entity came together because of bipartisan national-security concerns about ByteDance’s ties to the Chinese Communist Party. TikTok has also received criticism because of its hyper-addictive recommendation algorithm and its lack of privacy controls.
During his first term, Trump supported a requirement for TikTok to potentially face a ban if it did not sell its U.S. entity. But Trump opposed last year’s legislation for supposedly benefiting Meta and other rivals.
The Trump administration launched a White House TikTok account in August to spread its message to the short-form video platform. Trump was already on TikTok because he made an account during the 2024 campaign to court younger voters. TikTok has an estimated 150 million American users and it is especially popular with Millennials and Generation Z.