TikTok Agrees to Sell U.S. Operations to American Investor Group

TikTok has reached an agreement to divest its U.S. operations to a consortium predominantly composed of American investors, notably including software company Oracle. This move aims to address longstanding national security concerns regarding the app's Chinese parent company, ByteDance.

Under the terms of the deal, the new U.S. entity will oversee TikTok's American user data and content moderation policies. The algorithm powering TikTok will remain under ByteDance's ownership but will be leased to the U.S. entity, with American auditors ensuring compliance with security standards.

The ownership structure of the new entity is as follows: a consortium including Oracle, private equity firm Silver Lake, and United Arab Emirates state-backed investment firm MGX will collectively hold 45%. Existing ByteDance investors will retain approximately one-third, while ByteDance itself will maintain a 20% stake. A seven-member board, primarily composed of Americans, will oversee the new U.S. operations.

This agreement follows a series of legal and political challenges for TikTok in the U.S. In January 2025, the Supreme Court upheld a law requiring TikTok to sever ties with ByteDance or face a ban. Subsequently, the app was temporarily removed from major app stores and went offline in the U.S.

The deal is seen as a significant development for Oracle, expanding its influence in the American media and entertainment sectors. Oracle's involvement aligns with its previous interest in acquiring TikTok's U.S. operations, as reported earlier this year.

While the agreement addresses some national security concerns, it does not completely sever ties with ByteDance. Some experts argue that the continued connection leaves certain issues unresolved. The White House has declined to comment on the deal.

TikTok boasts an estimated 2 billion users globally, with less than 10% based in the U.S. The establishment of a U.S.-controlled entity introduces a dual-structure for the app, with separate oversight for American users and the rest of the world.