TikTok Sale Finalized as Oracle, Silver Lake and MGX Form U.S. Venture
TikTok announced on Jan. 22, 2026 that a U.S. joint venture will operate the app while ByteDance retains 19.9% ownership and Oracle will host U.S. user data.
Overview
TikTok announced on Jan. 22, 2026 that it established TikTok USDS Joint Venture LLC, with Oracle, Silver Lake and MGX each holding 15% and ByteDance retaining 19.9%, the company said.
Congress passed a 2024 divest-or-ban law and TikTok briefly went dark in January 2025 before returning to app stores on Feb. 2, 2025, making the Jan. 22, 2026 deal consequential, records show.
President Donald Trump praised the sale on Truth Social, writing "I am so happy to have helped in saving TikTok!", while Senator Edward Markey said the White House provided "virtually no details," Markey said.
TikTok said the joint venture is valued at about $14 billion, will oversee roughly 200 million U.S. users, and appoints Adam Presser as CEO with a seven-member board including Shou Zi Chew.
Critics and lawmakers say national security concerns persist because ByteDance will license the recommendation algorithm and retain control over e-commerce and advertising, prompting expected congressional hearings and third-party audits, experts said.
Analysis
Center-leaning sources frame the deal as a security-and-politics story by foregrounding investor backgrounds and political ties while underscoring data‑security goals. Editorial choices—highlighting Ellison as a “longtime Trump ally” and linking MGX’s chair to Rubio—create a political lens, whereas company statements about safeguards and board roles remain source content.
Sources (23)
FAQ
Oracle, Silver Lake, and MGX each hold 15% (45% total), ByteDance retains 19.9%, and other non-Chinese investors hold the remaining 35.1%.
Adam Presser is the CEO, Will Farrell is the Chief Security Officer, and it is governed by a seven-member majority-American board including Shou Zi Chew, with Raul Fernandez chairing the security committee.
The joint venture oversees U.S. app operations, including data protection with Oracle hosting U.S. user data, algorithm security, content moderation, and software assurance for over 200 million U.S. users.
Critics highlight national security risks as ByteDance licenses the recommendation algorithm and retains control over e-commerce and advertising, leading to expected congressional hearings and audits.
The TikTok USDS Joint Venture is valued at approximately $14 billion.
History
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