TikTok has secured a groundbreaking deal to spin off its U.S. operations, establishing a new joint venture primarily driven by American investors Oracle, Silver Lake, and MGX, ensuring the platform's continued presence in the market.
ByteDance, TikTok's parent company, will retain a minority stake of about 19.9%, while the American consortium will own approximately 45% collectively.
Set to close by January 22, 2026, the agreement addresses longstanding national security concerns around the app's Chinese ownership, averting a potential ban that loomed over its operations.
The deal comes amidst rising stock values for Oracle, driven by investor confidence following the announcement, with implications that Larry Ellison's fortune may have surged due to the partnership.
TikTok will need to adapt its algorithm by aligning it with U.S. user data, which could lead to shifts in how content is curated on the platform, raising questions about user experience.
The resolution of this issue follows years of political scrutiny, reflecting a broader consensus on ensuring digital security in the face of foreign ownership in American markets.