TikTok has signed an agreement to form a new joint venture in the US controlled by mostly American investors including Oracle Corporation, Silver Lake and MGX, according to an internal memo sent by TikTok CEO Shou Chew and obtained by ABC News.
This finally begins the process of ending the years-long saga over TikTok. It comes after Congress passed a law last year requiring TikTok to be banned in the United States if its Chinese parent company, ByteDance, does not sell its US entity to Americans.
In the memo, Chew said “there is more work to do” as the Jan. 22, 2026 closing date approaches.
“We have signed agreements with investors regarding a new TikTok joint venture in the US, which will enable more than 170 million Americans to continue discovering a world of infinite possibilities as part of a vital global community,” Chew added.
Oracle, Silver Lake and MGX will each own 15% of the new entity; ByteDance will retain 19.9%; 30.1% will be held by affiliates of existing ByteDance investors, according to the memo.
MGX is based in the United Arab Emirates. Oracle and Silver Lake declined to comment.
A person shows a TikTok logo.
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Oracle is co-founded by Larry Ellison, who is also its largest shareholder.
Privacy and free speech experts have raised concerns about the deal, noting that the Ellison family controls CBS through Paramount, has attempted to buy Warner Bros. and has close ties to President Trump.
Axios was the first to report on the deal signing.
“Pursuant to the Executive Order signed by U.S. President Donald J. Trump on September 25, 2025, the agreements specify that the U.S. joint venture will be majority owned by U.S. investors, governed by a new seven-member majority-U.S. board of directors, and subject to terms that protect American data and U.S. national security,” the memo reads.
“The American joint venture will be responsible for data protection, algorithm security, content moderation and software assurance in the United States.” adds the memo.
It adds that Oracle will be the “trusted security partner” responsible for auditing and validating compliance with the National Security Terms once the transaction is completed.
In September, the White House revealed details of a “framework agreement” between the United States and China to save TikTok’s US operations. At the time, a senior White House official said A “copy” of the algorithm, which is the secret sauce that makes TikTok so addictive, will be brought to the US joint venture and will be monitored by Oracle, to comply with US and Chinese laws.
