According to Thurrott.com, ByteDance has agreed to sell off TikTok’s U.S. operations to an American consortium featuring Oracle, the investment firm Silver Lake, and Abu Dhabi’s MGX. The deal, revealed in an internal memo from CEO Shou Chew obtained by Axios, is targeting a closing date of January 22, 2026. Under the terms, the three-company consortium will own a combined 45% of a new TikTok U.S. joint venture, with ByteDance retaining a 20% stake. Oracle is slated to become the “trusted security partner,” tasked with housing U.S. user data in its domestic cloud. The memo also states TikTok’s algorithm will be retrained using U.S. data to prevent outside manipulation. However, critical details, like the revenue-sharing agreement with ByteDance, which will keep control over e-commerce and advertising, remain unclear.
The Not-So-Simple Closing
So, a deal is in place. But here’s the thing: it’s far from done. The memo points to a date over a year away, and a lot can happen in that time. The biggest hurdle? Chinese regulators still have to sign off on this. And given that the whole forced sale was a result of U.S. national security law, Beijing’s approval is not a given. They might see this as a precedent they don’t want to set. Basically, we’re looking at a long runway filled with potential regulatory turbulence from both sides of the Pacific.
What This Means For Users
For the 170 million Americans on the app, the immediate goal is simple: no disruption. The frantic political maneuvering, including executive orders, was all about preventing TikTok from going dark. This deal is the proposed solution. Oracle running the data cloud is the direct answer to the “national security” argument. But will the feed feel different? The promise is a retrained algorithm using only U.S. data. In theory, that could subtly change what trends and what you see. But let’s be real—the core addictive, short-form video experience is the product. They’re not going to mess with the magic sauce that made it a threat to Instagram and Facebook in the first place.
The Real Power Dynamics
Now, this is where it gets interesting. ByteDance only owns 20% of the new U.S. venture, but reports say it keeps control over the big money makers: advertising and e-commerce. How does that work, exactly? If they’re pulling the strings on revenue and the product roadmap, is 45% ownership for the American consortium mostly a symbolic firewall? It seems like the deal is structured to technically satisfy the “divestment” requirement while letting ByteDance maintain significant operational influence. The lack of clarity on the revenue split is a huge red flag. It tells you the most important business terms are still being worked out, or they’re too controversial to state plainly.
A Shift, Not An Exit
Look, don’t think of this as ByteDance leaving America. Think of it as a costly restructuring to stay in the game. They’re giving up equity and some direct control to keep the lights on for their most valuable market outside China. For Oracle, it’s a massive cloud and credibility win. For Silver Lake and MGX, it’s a financial bet on a cash-generating machine. But the fundamental tension isn’t resolved. Can a platform born from a Chinese algorithm ever be fully “trusted” by U.S. lawmakers? This deal tries to paper over that question with corporate ownership charts. I think we’ll be hearing about this right up to that January 2026 deadline, and probably long after.
