What's happened
On December 18-19, 2025, TikTok and its Chinese parent ByteDance signed binding agreements with Oracle, Silver Lake, and Abu Dhabi's MGX to form a US joint venture. The deal, set to close January 22, 2026, complies with US law requiring ByteDance to divest TikTok's US operations or face a ban. The new entity will control US data, algorithm security, and content moderation, while ByteDance retains global commercial control.
What's behind the headline?
National Security vs Business Control
The deal carefully separates national security functions from commercial operations. Oracle, Silver Lake, and MGX will manage US data protection, algorithm retraining, content moderation, and software assurance, addressing US government concerns about Chinese influence and data access. However, ByteDance retains control over e-commerce, advertising, and marketing globally and in the US, preserving its commercial interests.
Ownership and Influence
The US joint venture will be 50% owned by new investors (Oracle, Silver Lake, MGX each 15%), about 30% by affiliates of existing ByteDance investors, and ByteDance itself will hold just under 20%, the legal maximum for a Chinese company. This structure limits ByteDance's US control but keeps it involved, raising questions about the true independence of the US entity.
Political and Corporate Dynamics
Larry Ellison's Oracle, a Trump ally, plays a pivotal role as the "trusted security partner," licensing the algorithm and managing US data storage. This has sparked criticism from Democrats like Senator Elizabeth Warren, who warn of billionaire influence over media and content. Republicans remain cautious, with some planning congressional hearings to scrutinize the deal.
Future Outlook
The deal ends years of uncertainty and legal battles, allowing TikTok to continue operating in the US. However, the exact operational changes remain unclear to employees and users. The January 22 closing will likely trigger increased regulatory and political scrutiny. The success of the joint venture in balancing security and business interests will shape TikTok's US future and set a precedent for foreign tech companies facing similar scrutiny.
Impact on Users
For over 170 million US users, the deal promises continuity with data stored domestically and content moderation overseen by US-based entities. Yet, concerns linger about algorithm control and potential political influence, especially given past statements by Trump about content preferences. Users should expect some operational changes but likely not immediate disruption.
What the papers say
Dan Whateley of Business Insider UK reports TikTok CEO Shou Chew's internal memo clarifying that the new US joint venture will control data security and algorithm training, while ByteDance retains e-commerce and advertising control, highlighting the deal's focus on national security over business operations. The New Arab and France 24 confirm the ownership split and the January 22 closing date, emphasizing the legal compliance aspect. Ashley Belanger at Ars Technica details the political tensions, noting Senator Elizabeth Warren's criticism of billionaire control and Republican plans for hearings, while also explaining Oracle's role as a "trusted security partner". The Guardian highlights Larry Ellison's involvement and the broader media ownership concerns, quoting Warren's warning about a "billionaire takeover of TikTok." The New York Times provides a detailed breakdown of ownership stakes and the operational division, noting the deal's significance in resolving TikTok's US future after years of uncertainty. These sources collectively illustrate a complex deal balancing US national security demands with ByteDance's commercial interests, amid ongoing political scrutiny and public concern.
How we got here
TikTok faced a US ban under a 2024 law mandating divestment of its US operations due to national security concerns over Chinese ownership. After legal challenges failed, TikTok negotiated a deal with US and allied investors to form a joint venture controlling US user data and algorithm security, aiming to satisfy US regulators and avoid a ban.
Go deeper
- How will the new ownership affect TikTok's algorithm?
- What role does Oracle play in the new TikTok US entity?
- Will ByteDance still influence TikTok's US operations?
Common question
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What Does the New TikTok Deal Mean for US Security and Users?
The recent agreement between TikTok's parent company ByteDance and US investors marks a major shift in how the popular app operates in America. This deal aims to address longstanding security concerns while allowing TikTok to continue serving its millions of users in the US. But what exactly does this mean for your data privacy, security, and how you use TikTok? Below, we answer the most common questions about this historic deal and its implications.
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What’s the future of TikTok in the US after the January deal?
TikTok’s future in the US is shaping up with a major deal that could change how American users access and experience the platform. With new ownership structures, questions about data security, content moderation, and political concerns are at the forefront. Below, we answer the most common questions about what this deal means for TikTok users and the platform’s future in the US.
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What Does TikTok’s US Deal Mean for Your Data Security?
TikTok's recent US deal has sparked many questions about how your personal data is protected and who controls the content you see. With new agreements involving US investors and a focus on data security, it's important to understand what this means for you. Below, we answer some of the most common questions about TikTok's deal and its impact on your privacy and security.
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How Are Global Tech Deals Impacting US Data Privacy Laws?
Recent international tech deals, like TikTok's US partnership, are reshaping the landscape of US data privacy laws. As foreign companies and investors become more involved in US tech, questions arise about how these deals influence regulations, data security, and algorithm control. Below, we explore the key questions about these developments and what they mean for users and regulators alike.
More on these topics
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TikTok/Douyin is a Chinese video-sharing social networking service owned by ByteDance, a Beijing-based Internet technology company founded in 2012 by Zhang Yiming.
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Oracle Corporation is an American multinational computer technology corporation headquartered in Redwood Shores, California. The company sells database software and technology, cloud engineered systems, and enterprise software products—particularly its
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ByteDance Ltd. is a Chinese multinational internet technology company headquartered in Beijing. It was founded by Zhang Yiming in 2012. ByteDance is reportedly worth over US$100 billion as of May 2020.
ByteDance's core product, Toutiao, is a content platf
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Lawrence Joseph Ellison is an American business magnate, investor, and philanthropist who is a co-founder and the executive chairman and chief technology officer of Oracle Corporation.
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Shou Zi Chew is a Singaporean businessman and entrepreneur who has served as chief executive officer of TikTok since 2021.
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Elizabeth Ann Warren is an American politician and academic serving as the senior United States Senator from Massachusetts since 2013. She was formerly a prominent scholar specializing in bankruptcy law.