TikTok has agreed to a landmark deal to sell its U.S. operations to a joint venture led by American investors, including tech giants Oracle and Silver Lake, ensuring the app can continue serving its millions of users in the United States amidst intensifying national security concerns.
This agreement allows Oracle, Silver Lake, and Abu Dhabi-based MGX to collectively own about 45% of TikTok's U.S. entity, with ByteDance retaining just under 20%, addressing fears over Chinese government influence on user data.
The deal, expected to close on January 22, 2026, follows a protracted negotiation process spurred by pressures from U.S. officials, notably during the Trump administration, aiming to mitigate risks related to Chinese ownership.
With Oracle’s shares soaring post-announcement, the company’s co-founder, Larry Ellison, has seen a significant boost to his wealth, reclaiming his status as one of the world’s richest individuals.
While the joint venture seeks to enhance data security by storing user information locally, questions linger about whether TikTok's popular algorithm will be affected, raising concerns about user experience and content quality.
This development represents a significant turning point in the ongoing saga of TikTok's regulatory challenges in the U.S., reflecting broader geopolitical tensions and the evolving landscape of digital privacy and ownership.
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