What's happened
On December 18-19, 2025, TikTok CEO Shou Zi Chew announced that TikTok and ByteDance have signed binding agreements with Oracle, Silver Lake, and MGX to form a new US joint venture. The deal, set to close on January 22, 2026, will reduce Chinese ownership to 19.9% and establish a majority-American board overseeing US data, algorithms, and content moderation, complying with US national security laws.
What's behind the headline?
Strategic Ownership Shift
The deal marks a pivotal restructuring of TikTok's US operations, shifting control to a consortium of American investors including Oracle, Silver Lake, and MGX, each holding 15%, with ByteDance retaining a minority 19.9% stake. This ownership balance is designed to comply with US law while maintaining ByteDance's involvement.
National Security and Data Control
The new US joint venture will have exclusive authority over US user data, algorithm retraining on American data, content moderation, and software assurance. Oracle's role as a 'trusted security partner' and the local storage of US data aim to mitigate national security concerns.
Political and Economic Implications
Larry Ellison's involvement, a known ally of former President Trump, has sparked debate about media concentration and political influence, with critics like Senator Elizabeth Warren questioning the deal's implications for media control.
Future Outlook
The deal will likely stabilize TikTok's US presence, avoiding a ban and preserving access for over 170 million American users. However, questions remain about the true independence of the algorithm and ByteDance's ongoing influence. The January 22 closing date sets a firm deadline, after years of uncertainty and legal battles.
Impact on Users
For US users, the deal promises continued access to TikTok with enhanced data protections. However, the political and corporate maneuvering behind the scenes underscores the complex intersection of technology, national security, and geopolitics shaping digital platforms.
What the papers say
The New York Times' Emmett Lindner detailed the ownership structure, noting the 50% stake by new investors including Oracle, Silver Lake, and MGX, with ByteDance retaining 19.9%. Lindner emphasized the joint venture's control over US data and algorithm retraining to address national security concerns. The Guardian highlighted political reactions, quoting Senator Elizabeth Warren's criticism of Larry Ellison's involvement and concerns over media consolidation. The Japan Times and France 24 focused on the operational details, quoting CEO Shou Zi Chew's memo about the new entity's authority over US data protection and content moderation. Business Insider UK provided legal context, explaining the Supreme Court's upholding of the divest-or-ban law and the extended deadlines. Sky News underscored the deal's significance in ending years of uncertainty for TikTok's US future, emphasizing the new majority-American board and local data storage. Together, these sources provide a comprehensive view of the deal's legal, political, and operational dimensions.
How we got here
The US passed the Protecting Americans from Foreign Adversary Controlled Applications Act in 2024, forcing ByteDance to divest TikTok's US operations or face a ban. This followed concerns over data security and algorithm manipulation by China. After legal challenges and multiple deadline extensions, a deal was brokered involving US investors to comply with the law and keep TikTok operational in the US.
Go deeper
- How will the new ownership affect TikTok's content moderation in the US?
- What role does Oracle and Larry Ellison play in the new TikTok US venture?
- What are the national security concerns that led to this deal?
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.
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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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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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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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.