TikTok, parent ByteDance form JV to transfer parts of US business to investors Oracle, Silver Lake and MGX

Video-sharing platform TikTok and its Chinese parent ByteDance Ltd. on Thursday closed a long-awaited joint venture to transfer parts of TikTok's United States business to non-Chinese owners. The move complies with the Trump administration's deal that allows it to continue operating in the US, Bloomberg reported.

TikTok will spin off a newly created US entity with three managing investors: US software giant Oracle Corp., private equity firm Silver Lake Management LLC, and Abu Dhabi-based investment company MGX, it added.

Under the deal, ByteDance will lease a copy of its content algorithm to the US entity, which will allow it to retrain the new algorithm on US user data, it said.

What do we know about the TikTok JV?

• According to Reuters, the JV known as TikTok USDS Joint Venture LLC will secure US user data, apps and algorithms through data privacy and cybersecurity measures. It cited internal documents from the company.
• The Bloomberg report added that TikTok CEO Shou Chew will get a seat on TikTok US's board and will continue running the app globally. Further, Chew's second-in-command, Adam Presser, will take over as CEO in the US.
• Under the deal, new investors will hold 50% of the new TikTok US entity, while existing ByteDance investors will control 30.1%, and parent ByteDance will hold 19.9%, according to Bloomberg.
• ByteDance is also expected to maintain control over TikTok US's advertising division and fast-growing e-commerce segment, TikTok Shop.

TikTok begins process to comply with Trump deal

The deal, announced in September 2025, was initiated to address national security concerns and avoid a ban on the popular social media platform used by over 200 million Americans, reported Bloomberg.

The sale would culminate years-long back-and-forth that has threatened to shut down TikTok in the US, it said. The move to ban the app in the US was passed by Congress in 2024, conditional on parent ByteDance selling the app to a US company.

Prior to this, however, US President Donald Trump had unsuccessfully tried to ban the app in 2020, during his first term in the White House.

The reason cited was concerns that the Chinese government could abuse access to US user data or push narratives preferred by Beijing. Over the years, TikTok has stated that neither has happened, it added.

(With inputs from Agencies)