TikTok has agreed to sell its US unit to Oracle, Silver Lake, and MGX in a move to evade a complete ban. Now, the app will continue to operate with no ban threats, at least in the near future.
According to reports, the deal will be finalized on January 22, 2026. CEO Shou Zi Chew has told employees that ByteDance and TikTok have reached a deal involving three investors.
TikTok US investors
TikTok US will have new investors- Oracle, Silver Lake, and MGX, each holding 15% share. 30.1% of shares will be owned by affiliates of ByteDance investors. The China-based original parent company, ByteDance, will own 19.9% of shares in the popular video-sharing company.
The US TikTok JV will have a seven-member American board of directors, and the platform will be subject to terms and conditions that comply with the US values and address national security concerns. TikTok’s US user data will be operated by Oracle.
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Algorithm in the US
The gold of the deal- TikTok US’s algorithm will be redesigned after the US user data. This will “ensure the content feed is free from outside manipulation.” The US entities will also be responsible for content moderation.
End to the ban saga
The deal for TikTok’s US share ends the protracted saga over the TikTok ban in the US. The former US president Joe Biden had signed a law that would facilitate the app’s ban. However, Donald Trump offered reprieve by signing an executive order keeping the platform running while allowing negotiations over its sale to continue.
With TikTok sharing its ownership among its new investors in the US, the platform will run uninterrupted. Trump has often said that he has a warm spot in his heart for the popular social media platform. It seems that it also played significantly in favor of TikTok, users, and the country, too.