TikTok Signs Deal to Spin Off US Business

TikTok has signed an agreement to spin off its US operations into a new entity backed by a group of mostly American investors, marking a significant step toward securing the platform’s future in the United States amid intensifying regulatory scrutiny.

In a memo to employees, TikTok CEO Shou Chew said the company has reached agreements with investors to form a new TikTok US joint venture. Although the transaction has not yet closed, Chew said the deal is designed to ensure that more than 170 million Americans can continue using the app.

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 advocated a sale that would place TikTok’s US operations under American control.

Under the proposed structure, the US version of TikTok will be operated by a newly created 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. Affiliates of existing ByteDance investors will hold just over 30%, while ByteDance will retain a 19.9% minority stake.

Chew noted that additional steps remain before the deal is finalized, with the companies targeting a closing date of 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 data storage for American users. The US joint venture will also handle content moderation, while ByteDance’s global entity is expected to continue managing e-commerce, advertising, and marketing.

The deal still requires regulatory approvals in both countries, including clearance from Beijing. While Trump has said Chinese President Xi Jinping supports the agreement, Chinese authorities have yet to formally confirm their approval.