TikTok has reached a significant milestone in securing its long-term future in the United States, announcing that it has signed a deal to spin off its U.S. operations into a new joint venture.
This move follows a law passed last year that mandated TikTok’s U.S. version must be separated from its Chinese parent company, ByteDance, or face a ban in the U.S.
The deal also follows previous delays by the Trump administration, which sought to transfer TikTok’s control to American ownership.
In a memo sent to employees on Thursday, TikTok CEO Shou Chew confirmed that the agreements with investors regarding the new U.S. joint venture had been finalized.
According to the terms, the venture will be controlled by a group of investors that includes Oracle (NYSE:ORCL), private equity firm Silver Lake, and Emirati-backed investment firm MGX, who will collectively own 50% of the joint venture.
ByteDance affiliates will hold just over 30%, and ByteDance itself will retain 19.9%.
Chew’s memo emphasized that the deal would allow over 170 million American users to continue using TikTok, preserving their access to “a world of endless possibilities” while becoming part of a “vital global community.”
The deal aims to ease the U.S. government's security concerns over TikTok's data usage and content moderation, with Oracle overseeing U.S. data storage, and the new joint venture managing content moderation for American users.
However, ByteDance will retain control over advertising, e-commerce, and marketing on the platform.
While the deal is close to completion, there are still hurdles to overcome, including the approval of the Chinese government, which has yet to officially confirm its stance on the deal.
In September 2025, President Trump signed an executive order stating that the deal met the requirements for a “qualified divestiture,” delaying the enforcement of the U.S. law and giving the companies 120 days to finalize the transaction.
The deal is expected to close by January 22, 2026, pending regulatory approvals from both U.S. and Chinese authorities.
This spin-off deal marks a critical step in TikTok’s ability to operate in the U.S. without facing a potential ban, and it also sets the stage for its future growth in the country, with American investors now having significant control of the popular social media app.