Hustler Words – After years of intense governmental scrutiny and protracted negotiations, TikTok has finalized an agreement to transfer a significant portion of its United States operations to a consortium of American investors. This landmark deal effectively concludes a prolonged dispute where the federal government consistently pushed for such a divestiture, citing national security concerns.
The new collaborative structure, internally referred to as a "new TikTok U.S. joint venture" in a confidential memo from ByteDance CEO Shou Chew, obtained by Hustler Words, establishes a distinct entity. This newly formed venture, officially named "TikTok USDS Joint Venture LLC," will see prominent American financial and technology firms assume considerable oversight of the platform’s U.S.-based business.
The investor group spearheading this acquisition includes cloud computing giant Oracle, the specialized technology private equity firm Silverlake, and MGX, an Abu Dhabi-based investment powerhouse with a strategic focus on artificial intelligence. Collectively, these entities will command a 45% stake in TikTok’s U.S. operations, while ByteDance, the Chinese parent company, will retain a minority share of nearly 20%, according to the internal document.
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Under the terms of the agreement, TikTok USDS Joint Venture LLC will bear primary responsibility for critical operational aspects within the U.S. This encompasses robust data protection protocols, ensuring the integrity and security of the platform’s algorithms, overseeing content moderation policies, and guaranteeing software assurance. Furthermore, the memo specifies that a designated "trusted security partner" will be tasked with auditing and validating adherence to the agreed-upon National Security Terms, with Oracle slated to assume this crucial role upon the transaction’s completion.
The anticipated closing date for this complex deal is set for January 22, 2026. The initial reports detailing this development were first published by Axios.
This arrangement largely aligns with the framework outlined in an executive order signed by then-President Trump in September, which similarly advocated for the sale of TikTok’s U.S. operations to an American investment group. Prior to this official disclosure, CNBC had previously identified Oracle, Silverlake, and MGX as the principal investors involved. Until now, ByteDance had largely remained silent on the specifics of such a transaction, only publicly committing to comply with U.S. regulations to ensure TikTok’s continued availability to its American user base. The U.S. government’s persistent efforts to separate TikTok’s American business from its Chinese parent company have consistently been predicated on safeguarding national security interests.
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