ByteDance Agrees to Sell Majority Stake in TikTok's US Business to American Consortium
ByteDance has signed a deal to sell just over 80% of TikTok's US assets to a consortium of American investors including Oracle, Silver Lake, and MGX. The transaction will create a new entity called TikTok USDS Joint Venture LLC, with ownership structured as 50% held by the US-investor consortium, 30.1% by affiliates of existing ByteDance investors, and 19.9% by ByteDance itself.
The joint venture's board will comprise seven members, with a majority being American directors, and is designed to safeguard Americans' data and US national security. As part of the deal, US user data will be stored locally within the United States. The arrangement aims to ensure TikTok can continue operating in the US market.
The closing of the deal is expected by January 22, 2026. This agreement follows pressure from the US government on ByteDance to divest TikTok's US business under laws intended to prevent the Chinese government from accessing Americans' data. President Biden had set a January 2025 deadline, during which TikTok briefly went dark when ByteDance initially did not comply. Former President Trump also issued an order to keep the platform running.
An internal memo cited by Sky News stated the deal would allow over 170 million Americans to continue using TikTok as part of a global community. The three American investors will jointly own the new venture, supported by the majority-American board and data protection measures intended to address national security concerns.
