TikTok has signed an agreement to spin off its US operations into a new entity backed by a group of mostly American investors, a key step toward securing the app’s future in the United States amid mounting regulatory pressure.
In a memo to employees on Thursday, TikTok CEO Shou Chew said the company had reached agreements with investors to form a new TikTok US joint venture. While the transaction is not yet complete, Chew said the deal would allow more than 170 million Americans to continue using the platform.
The move follows a US law passed last year requiring TikTok to be divested from its Chinese parent, ByteDance, or face a nationwide ban. Enforcement of the law was repeatedly delayed by President Donald Trump, who pushed for a sale that would shift control of TikTok’s US operations to American ownership.
Under the agreement, the US app will be operated by a new joint venture. A 50% stake will be held by a consortium led by Oracle, private equity firm Silver Lake, and Abu Dhabi–backed investment firm MGX. Just over 30% will be owned by affiliates of existing ByteDance investors, while ByteDance will retain a 19.9% stake.
Chew said there is still work to be done before the deal closes, with the parties targeting completion by January 22, 2026. Both TikTok and ByteDance have agreed to the terms.
As part of the arrangement, TikTok’s algorithm will be retrained using US user data, with Oracle overseeing the storage of Americans’ data. The US joint venture will also take responsibility for content moderation. However, ByteDance’s global entity is expected to continue managing e-commerce, advertising, and marketing functions.
The deal will require approval from regulators in both countries, including sign-off from the Chinese government. While Trump has said Chinese President Xi Jinping supports the agreement, Beijing has yet to officially confirm its approval.
