ByteDance Agrees to Sell Majority Stake in TikTok's US Business to American Investors
ByteDance has signed a deal to sell TikTok's US arm to a consortium of American investors, ensuring the platform's continued operation in the United States. The investors involved are Oracle, Silver Lake, and MGX, which will form the TikTok USDS Joint Venture LLC. Under the agreement, ByteDance will sell just over 80% of TikTok's US assets. The ownership of the new venture will be split with 50% held by the consortium, 30.1% by ByteDance affiliates, and 19.9% directly by ByteDance. The joint venture will be governed by a seven-member board of directors, with a majority being American nationals. The deal includes provisions for storing US user data locally and includes terms designed to protect Americans' data privacy and US national security. The agreement addresses longstanding concerns about potential access to US data by China and ensures ongoing service for approximately 170 million US TikTok users. The transaction is expected to close on 22 January 2026, according to an internal memo reviewed by NBC News, concluding years of regulatory pressure under a US law requiring ByteDance to divest or face a potential ban on TikTok in the United States.
