TikTok has reached an agreement with Oracle, Silver Lake, and MGX to restructure its U.S. operations, significantly reducing the risk of a nationwide ban and meeting U.S. regulatory requirements ahead of the January deadline. The deal, expected to close on January 22, comes nearly a year after U.S. legislation mandated the sale or shutdown of TikTok’s U.S. business over national security concerns. A new joint venture will oversee TikTok’s U.S. entity under this agreement.
Under the proposed structure, Oracle, Silver Lake, and MGX will collectively hold a 45% stake, while ByteDance, TikTok’s Chinese parent company, will retain a minority share. This deal follows months of intense negotiations and regulatory scrutiny, addressing concerns about TikTok’s ties to China and its handling of U.S. user data.
The deal’s urgency is highlighted by the January 23 deadline, which could have led to TikTok’s removal from U.S. app stores. The agreement brings clarity to TikTok’s future in the U.S., offering reassurance to users, advertisers, and creators.
