TikTok has reached a landmark agreement with Oracle and a consortium of U.S.-based investors to restructure its American operations, sharply reducing the risk of a nationwide ban and bringing the platform closer to meeting U.S. regulatory demands ahead of a looming January deadline.
The transaction, expected to close on January 22, follows nearly a year of political and regulatory uncertainty after U.S. lawmakers ordered TikTok to sell or shut down its U.S. business over national security concerns.
According to Axios, which cited an internal memo from TikTok chief executive Shou Zi Chew, the deal will establish a new joint venture to oversee TikTok’s U.S. entity, effectively separating its American operations from its China-based parent, ByteDance.
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Under the proposed ownership structure, Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment company MGX will collectively acquire a 45% stake in the new company. ByteDance will retain a minority interest, although the exact size of its holding has not been publicly disclosed.
The agreement caps months of intense negotiations as TikTok scrambled to comply with U.S. legislation requiring that at least 80% of its American assets be transferred to an entity approved by U.S. authorities. The law, signed by former President Joe Biden, reflected bipartisan concerns that TikTok’s ties to China could expose sensitive user data or enable foreign influence operations allegations the company and ByteDance have repeatedly denied.
The urgency of the talks has been driven by a potential ban deadline of January 23. That date stems from the latest extension signed in September by President Donald Trump, which temporarily delayed enforcement of the law to give negotiators additional time. Failure to finalise an acceptable deal by then could have seen TikTok removed from U.S. app stores and barred from operating in the country.
In his memo to staff, Chew described the agreement as a major milestone, while cautioning that further work remains before the transaction is fully completed. He noted that both TikTok and ByteDance have agreed to the outlined terms, signalling internal alignment after months of uncertainty over the platform’s future in its largest advertising market.
Oracle’s role is particularly significant. The technology giant already serves as TikTok’s U.S. cloud services provider and has featured prominently in earlier proposals aimed at addressing Washington’s data security concerns. The addition of Silver Lake and MGX also underscores strong institutional backing for the restructured entity, potentially strengthening TikTok’s standing with regulators.
For U.S. users, advertisers, and creators, the deal offers a measure of reassurance that TikTok will continue operating without disruption, preserving a platform that has become deeply embedded in the country’s digital culture and advertising ecosystem.
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