After years of political scrutiny, legal uncertainty, and multiple deadline extensions, TikTok’s future in the United States now appears settled. The short-video platform’s Chinese parent company ByteDance has signed binding agreements to transfer majority control of TikTok’s US business to an Oracle-led investor group.
The move brings an end to Washington’s prolonged national security concerns surrounding TikTok’s Chinese ownership and helps the company avoid a potential US ban that had been looming since 2024. While ByteDance will retain a minority stake, operational control will shift to US-backed investors, making this one of the most closely watched technology ownership transitions in recent history.
TikTok’s parent company ByteDance has officially signed binding agreements to sell majority control of its US operations to a group of American and global investors.
TikTok CEO Shou Zi Chew confirmed the development in an internal communication to employees, describing it as a decisive step toward securing TikTok’s future in the United States after years of regulatory and political uncertainty.
This announcement marks the first time the company has moved beyond tentative frameworks to a legally binding deal structure.
Under the agreement, a new joint venture will be formed to run TikTok’s US business.
Around 50 per cent ownership will be held by a consortium led by Oracle, along with Silver Lake and Abu Dhabi-based investment firm MGX
ByteDance will retain a 19.9 per cent stake
The remaining shares will be held by existing ByteDance-linked investors
This structure ensures that operational control rests with US-backed entities, a key demand from US lawmakers and regulators.
The transaction is expected to close on January 22, 2026. Once finalised, it will effectively bring an end to Washington’s long-running effort to force ByteDance to divest TikTok’s US operations over national security concerns.
The deal closely mirrors the framework announced in September, when President Donald Trump delayed enforcement of legislation that could have resulted in a nationwide TikTok ban.
As part of the agreement, Oracle is expected to license TikTok’s recommendation algorithm, with user feeds retrained using American user data.
TikTok has stated that this approach will:
Protect user data
Maintain platform performance
Ensure continuity for its 170 million US users
However, critics remain unconvinced. Senator Ron Wyden and other lawmakers argue that the arrangement may not go far enough in addressing deeper concerns around data privacy, algorithm transparency, and foreign influence.
TikTok says more than seven million US small businesses rely on the platform for marketing, customer engagement, and revenue generation. Many creators and businesses are cautiously optimistic that the ownership change will not disrupt their reach or monetisation.
At the same time, reports indicate that TikTok’s US employees may face stricter return-to-office requirements next year, suggesting operational changes are already being rolled out as the ownership transition approaches.
The Oracle-led takeover represents a rare compromise between geopolitical pressure and corporate continuity. It preserves TikTok’s presence in the US market while reshaping its ownership and governance to align with American regulatory expectations.
For the tech industry, the deal could become a template for how global platforms navigate national security concerns in an increasingly fragmented digital world.