TikTok Makes New Deal With Oracle and U.S. Investors

TikTok has reached an agreement with Oracle and a group of U.S. investors to restructure its American operations. 

This move lowers the risk of a nationwide ban and brings the company closer to meeting U.S. regulatory requirements ahead of the January deadline.

The deal is expected to close on January 22, almost a year after U.S. law required TikTok to sell or shut down its U.S. business over national security concerns.

According to an internal memo from TikTok CEO Shou Zi Chew, the transaction will create a new joint venture to manage TikTok’s U.S. operations. Under the proposed plan, Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment firm MGX will collectively own 45% of the new company. 

ByteDance, TikTok’s China-based parent, will keep a minority stake, though exact details are not fully disclosed.

The agreement comes after months of negotiations and regulatory scrutiny. U.S. law requires that at least 80% of TikTok’s American assets be sold to an entity approved by U.S. authorities. 

The legislation, signed by former President Joe Biden, reflected bipartisan concerns that TikTok’s ties to China could expose U.S. user data or enable foreign influence. TikTok and ByteDance have denied these claims.

The urgency of the deal is clear, with the next possible ban deadline on January 23. If the transaction is not finalized by then, TikTok could be removed from U.S. app stores and barred from operating in the country.

In his memo, CEO Chew called the agreement a major milestone but noted that more work is needed to complete the transaction. He confirmed that both ByteDance and TikTok have agreed to the terms.

Oracle’s role is significant, as it already provides TikTok’s U.S. cloud services and has been central to earlier data security proposals. 

The involvement of Silver Lake and MGX adds strong institutional support, which could improve TikTok’s standing with regulators.

For U.S. users, advertisers, and creators, the deal ensures that TikTok can continue operating without disruption while meeting government requirements.