TLDR
- TikTok finalizes deal to form a U.S. entity with Oracle and investors for national security.
- Oracle, Silver Lake, and MGX each hold 15% in TikTok’s new U.S. venture.
- ByteDance keeps a 19.9% stake in TikTok’s new U.S. entity with security safeguards.
- New U.S. entity ensures TikTok’s continued operations amid national security concerns.
TikTok has finalized a major agreement to form a new U.S. entity with Oracle, Silver Lake, and MGX as its primary investors. This restructuring follows years of legal and political discussions over national security and data privacy concerns. The new entity aims to ensure that the video-sharing platform can continue to operate in the United States, where TikTok has over 200 million users.
TikTok has officially established a U.S. entity with three managing investors: Oracle, private equity firm Silver Lake Management, and Abu Dhabi-based investment company MGX.https://t.co/ja02RI6gX8 pic.twitter.com/Cfb8ZaKM32
— Yahoo Finance (@YahooFinance) January 23, 2026
The agreement marks the end of long-standing uncertainty surrounding TikTok’s future in the U.S. Following a law passed by Congress in 2024, TikTok had to find a new owner or face a potential ban. The deal also resolves issues related to TikTok’s connection to ByteDance, the Chinese parent company.
Investors in the New U.S. Venture
The new U.S. venture involves Oracle, Silver Lake, and MGX, who each own a 15% stake in the company. ByteDance, TikTok’s Chinese parent, retains a 19.9% share. This deal ensures that TikTok’s operations in the U.S. remain intact and compliant with local laws. The participation of these investors aims to protect U.S. user data, content moderation, and algorithm security, addressing concerns about foreign influence.
The new entity will operate under strict data protection protocols, with user data being stored in a local system run by Oracle. TikTok has also committed to modifying its content recommendation algorithm to ensure it is retrained using only U.S. user data. The company has stated that ByteDance will license the algorithm for use by the U.S. entity, without direct involvement in its operation.
Legal and Political Context of the Deal
This move follows a multi-year legal struggle over TikTok’s presence in the U.S. The U.S. government raised national security concerns, citing the potential for the Chinese government to access American user data through ByteDance. In 2024, a bipartisan law was passed that required TikTok to divest from ByteDance, or it would face a ban. TikTok briefly went dark in early 2025 but was given a temporary reprieve to finalize this deal.
While the U.S. Supreme Court upheld the law, the current administration allowed room for negotiations, eventually leading to the agreement with Oracle and other investors. The deal resolves these concerns, allowing TikTok to continue its operations in the U.S. without facing a ban.
Governance and Future Operations
Adam Presser, the former head of TikTok’s operations and trust and safety, has been appointed CEO of the new U.S. entity. He will lead the company alongside a board of directors consisting of seven American members, including TikTok’s CEO, Shou Chew. The structure of the board and leadership reflects the importance of ensuring U.S. control and oversight.
The deal also extends to other apps within ByteDance’s portfolio, such as CapCut and Lemon8. These apps will now be subject to the same data and security protocols required by U.S. regulators.
By restructuring its U.S. operations, TikTok has addressed legal challenges while maintaining its position in the competitive social media landscape. The new entity aims to foster continued growth and innovation while adhering to the regulatory and security requirements of the U.S. government.
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