ByteDance agrees to sell over 80% of TikTok’s U.S. operations to Oracle, Silver Lake, and MGX to avert a United States’ government ban.
ByteDance, the Chinese parent company of TikTok, has reached an agreement to sell more than 80% of its U.S. operations to a consortium of American and global investors, including Oracle, Silver Lake, and MGX. The deal, designed to address U.S. national security concerns, would allow TikTok to continue operating in the United States.
Set to close on January 22, 2026, the transaction ensures that the social media platform will remain accessible to over 170 million U.S. users. The ownership structure following the sale will see 50% of TikTok’s U.S. assets held by the consortium, with each investor—Oracle, Silver Lake, and MGX—owning approximately 15%. Affiliates of existing ByteDance investors will hold 30.1%, while ByteDance will retain a 19.9% stake.
Oracle has been designated as TikTok’s “trusted security partner,” responsible for auditing and verifying compliance with U.S. regulations. As part of the agreement, TikTok’s American user data will be stored in Oracle’s U.S.-based cloud computing centers to ensure compliance with privacy and security standards.
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The move comes amid mounting pressure from the U.S. government, which has raised concerns over potential Chinese access to sensitive data and the risk of foreign influence via popular social media platforms. Negotiations over TikTok’s future in the U.S. have intensified over the past year, with authorities calling for structural changes to safeguard user data.
“This agreement provides a pathway for TikTok to operate safely and securely in the United States, while addressing national security concerns,” a spokesperson for TikTok said in a statement. “We are committed to protecting U.S. user data and complying with all regulatory requirements.”
Analysts say the deal represents a compromise that preserves TikTok’s market presence while giving U.S. regulators confidence that oversight and data security are strengthened. The platform, which has become a cultural and commercial phenomenon, is a key player in short-form video content, advertising, and e-commerce trends.
The sale highlights the growing scrutiny of foreign-owned technology companies operating in the United States and underscores the increasing importance of data sovereignty in international business. TikTok’s U.S. operations will now be managed under a hybrid ownership model that balances foreign investment with American oversight.
Regulators and investors are expected to closely monitor the transition as the deal moves toward its closing date in January.