TikTok Secures U.S. Deal to Restructure Operations
TikTok has reached an agreement with Oracle and a consortium of U.S.-based investors to restructure its American operations, a move that sharply lowers the likelihood of a nationwide ban.
The deal brings the video-sharing platform closer to meeting U.S. regulatory requirements ahead of a critical January deadline and is expected to close on January 22.
Background: Law-mandated Sale to Avoid Shutdown
The agreement comes nearly a year after U.S. legislation required TikTok to either sell or shut down its U.S. business over national security concerns tied to its Chinese ownership.
According to reports by Axios, citing an internal memo from TikTok Chief Executive Officer Shou Zi Chew, the transaction will result in the creation of a new joint venture to oversee TikTok’s U.S. entity.
Proposed Ownership Structure
Under the proposed arrangement, Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment company MGX will collectively hold a 45% stake in the new U.S.-focused company.
ByteDance, TikTok’s China-based parent, will retain a minority ownership interest, though its exact share has not been publicly disclosed.
The deal follows months of negotiations as TikTok worked to comply with U.S. law requiring that at least 80% of its American assets be sold to an entity approved by U.S. authorities.
Regulatory Pressure and Political Context
The legislation mandating the divestment was signed into law by former U.S. President Joe Biden and reflected bipartisan concerns that TikTok’s links to China could expose sensitive U.S. user data or enable foreign influence operations.
TikTok and ByteDance have repeatedly denied these allegations.
The urgency intensified with a potential ban deadline set for January 23, stemming from a recent enforcement extension signed in September by President Donald Trump to allow additional time for negotiations.
Failure to finalise an acceptable transaction by that date could have led to TikTok being removed from U.S. app stores and restricted from operating in the country.
What TikTok’s CEO Said
In his internal memo to employees, Chew described the agreement as a major milestone but warned that further steps remain 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 surrounding the platform’s future in its largest advertising market.
Oracle’s Strategic Role
Oracle’s involvement is particularly significant given its existing role as TikTok’s U.S. cloud infrastructure provider and its central position in earlier proposals aimed at addressing U.S. data security concerns.
Industry analysts say Oracle’s expanded role could strengthen regulatory confidence that U.S. user data will remain protected under American oversight.
