TikTok is spinning off its U.S. operations into a new joint venture with American investors, including tech giants Oracle and Silver Lake, to appease national security concerns and continue its popular app's presence in the United States.
This landmark agreement allows Oracle, Silver Lake, and Abu Dhabi's MGX to control 45% of TikTok's U.S. business, with ByteDance retaining 19.9%, paving the way for enhanced American oversight of user data and content moderation.
The deal, set to close on January 22, 2026, resolves years of uncertainty and threats of a potential U.S. ban tied to fears of foreign influence over American data privacy.
As the new structure takes shape, questions linger about the future of TikTok's beloved algorithm, which may need retraining on U.S. data, potentially altering the user experience.
With Larry Ellison's Oracle benefiting from a surge in stock prices following the announcement, the deal marks a significant financial win for the tech mogul.
This transition not only underscores the complexities of U.S.-China relations but also highlights the ongoing scrutiny facing foreign technology firms as they navigate the American market landscape.
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