TikTok to be Majority-owned by American Investors in New Joint Venture

NEW YORK – TikTok’s plan to separate from its Chinese parent company, bytedance, moved forward on December 18th with the proclamation that the popular social media app will be acquired by a group of buyers led by US tech giant Oracle.

TikTok CEO Chew Shou Zi informed employees that the company and ByteDance have signed binding agreements to establish a US joint venture majority-owned by American investors, as detailed in an internal memo.

Mr. Chew expressed his enthusiasm, stating that agreements have been finalized with Oracle, US global private equity firm Silver Lake Management, and Abu Dhabi-based investment company MGX. The deal is anticipated to close on January 22, 2026, though Mr. chew acknowledged that “there’s more work to be done.”

The memo did not address China’s stance on the transaction, which will transfer some – but not complete – control of TikTok US from ByteDance.

Once finalized, the US joint venture will function as an self-reliant entity responsible for data protection, content moderation, and algorithm security within the country. Mr. Chew also stated the new entity will be “governed by a new seven-member majority-American board of directors.”

Oracle shares rose nearly 6% in after-hours trading on December 18th following the announcement.

The deal mirrors the White house’s September announcement, which was contingent on Chinese approval and valued TikTok’s US operations at approximately US$14 billion (S$18 billion).

The investment structure will see 50% of TikTok US held by new investors, with oracle, Silver Lake, and MGX each securing a 15% ownership stake. Affiliates of existing ByteDance investors will hold 30.1%, while ByteDance will retain 19.9%.

The terms suggest ByteDance may maintain oversight of key aspects of US TikTok, an app used by half the country.

Bloomberg News previously reported that ByteDance would retain roughly 50% of the profits from TikTok’s US operations.

ByteDance’s continued involvement has been a central issue in negotiations and has drawn criticism, including from members of former US president Donald Trump’s political party.