TikTok has reached an agreement with Oracle and a group of U.S. investors to restructure its American operations. This move sharply reduces the risk of a nationwide ban ahead of a January deadline.
The deal, expected to close on January 22, follows U.S. legislation that requires TikTok to sell or shut down its U.S. business due to national security concerns.
According to Axios, citing an internal memo from CEO Shou Zi Chew, the arrangement will create a new joint venture to run TikTok’s U.S. entity. Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively own 45 per cent of the new company, while parent firm ByteDance will retain a minority stake.
The agreement comes after months of negotiations to meet U.S. rules mandating that most U.S. assets be placed under approved American ownership. The law, signed by former President Joe Biden, was driven by bipartisan concerns over data security and foreign influence, claims TikTok and ByteDance have denied.
The urgency is heightened by a January 23 deadline tied to an extension signed in September by President Donald Trump. Missing the deadline could have led to TikTok’s removal from U.S. app stores.
Chew described the deal as a major milestone but noted further steps are needed to finalise the transaction. Oracle’s role is significant, given its position as TikTok’s U.S. cloud provider, while the involvement of Silver Lake and MGX adds institutional backing.
For U.S. users, creators, and advertisers, the deal offers reassurance that TikTok is likely to continue operating without disruption.
