TikTok signs deal to create US joint venture
Summarize this article with:
The future of TikTok in the US had been in doubt since 2024 when Congress passed a law mandating ByteDance divest its US operations © APTikTok signs deal to create US joint venture on x (opens in a new window)TikTok signs deal to create US joint venture on facebook (opens in a new window)TikTok signs deal to create US joint venture on linkedin (opens in a new window)TikTok signs deal to create US joint venture on whatsapp (opens in a new window) Save TikTok signs deal to create US joint venture on x (opens in a new window)TikTok signs deal to create US joint venture on facebook (opens in a new window)TikTok signs deal to create US joint venture on linkedin (opens in a new window)TikTok signs deal to create US joint venture on whatsapp (opens in a new window) Save Rafe Rosner-Uddin in San Francisco, Antoine Gara in New York and Alex Rogers in WashingtonPublishedDecember 19 2025Jump to comments sectionPrint this pageUnlock the White House Watch newsletter for freeYour guide to what Trump’s second term means for Washington, business and the worldTikTok has signed binding agreements with investors including Oracle, Silver Lake and MGX for the sale of its US arm, creating a joint venture as part of a deal orchestrated by President Donald Trump.Larry Ellison’s database giant, private equity group Silver Lake and Abu Dhabi’s MGX will each control 15 per cent of the company, TikTok’s chief executive Shou Zi Chew told employees in a memo obtained by the Financial Times on Thursday. ByteDance will own 19.9 per cent — the most allowed by US law. A group of new and existing investors in TikTok will take the remaining 35 per cent. The deal is expected to close on January 22.“Upon the closing, the US joint venture, built on the foundation of the current TikTok US Data Security (USDS) organisation, will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance,” Chew said.“TikTok global’s US entities will manage global product interoperability and certain commercial activities, including ecommerce, advertising and marketing,” he added.Oracle, Silver Lake and TikTok declined to comment. MGX did not immediately respond to a request for comment.The future of TikTok in the US has been in doubt since last year when Congress passed a law mandating ByteDance divest its US operations over privacy and national security concerns.The Trump administration in September announced a breakthrough in negotiations with Beijing that was expected to clear the way for a deal. Trump postponed a ban on the app until January 23. Vice-president JD Vance said at the time that the deal would value TikTok’s US arm at $14bn. It is unclear if these terms have since changed. ByteDance is expected to receive a 50 per cent share of the app’s American profits despite US shareholders owning the majority of the business, the FT previously reported. International revenues were worth $40bn of the Chinese company’s overall 2024 sales of $155bn, with its US TikTok arm providing the largest chunk of its overseas business.Oracle will oversee the algorithm that recommends videos in users’ feeds — the crucial technology that makes the app so popular with young people. It will be retrained using US user data to “ensure the content feed is free from outside manipulation”, according to Chew’s memo.Under Chinese law, Beijing has control over the export of algorithms. The country’s cyber security regulator previously said it had agreed a framework for the TikTok deal that included “licensing the algorithm and other intellectual property rights” to the US.This compromise has faced pushback from lawmakers who want to see TikTok shut down in the US or more completely severed from ByteDance.Additional reporting by Hannah Murphy in LondonReuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article Social Media Add to myFT US companies Add to myFT US-China relations Add to myFT Technology sector Add to myFT US politics & policy Add to myFT CommentsTikTok has signed binding agreements with investors including Oracle, Silver Lake and MGX for the sale of its US arm, creating a joint venture as part of a deal orchestrated by President Donald Trump.Larry Ellison’s database giant, private equity group Silver Lake and Abu Dhabi’s MGX will each control 15 per cent of the company, TikTok’s chief executive Shou Zi Chew told employees in a memo obtained by the Financial Times on Thursday. ByteDance will own 19.9 per cent — the most allowed by US law. A group of new and existing investors in TikTok will take the remaining 35 per cent. The deal is expected to close on January 22.“Upon the closing, the US joint venture, built on the foundation of the current TikTok US Data Security (USDS) organisation, will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance,” Chew said.“TikTok global’s US entities will manage global product interoperability and certain commercial activities, including ecommerce, advertising and marketing,” he added.Oracle, Silver Lake and TikTok declined to comment. MGX did not immediately respond to a request for comment.The future of TikTok in the US has been in doubt since last year when Congress passed a law mandating ByteDance divest its US operations over privacy and national security concerns.The Trump administration in September announced a breakthrough in negotiations with Beijing that was expected to clear the way for a deal. Trump postponed a ban on the app until January 23. Vice-president JD Vance said at the time that the deal would value TikTok’s US arm at $14bn. It is unclear if these terms have since changed. ByteDance is expected to receive a 50 per cent share of the app’s American profits despite US shareholders owning the majority of the business, the FT previously reported. International revenues were worth $40bn of the Chinese company’s overall 2024 sales of $155bn, with its US TikTok arm providing the largest chunk of its overseas business.Oracle will oversee the algorithm that recommends videos in users’ feeds — the crucial technology that makes the app so popular with young people. It will be retrained using US user data to “ensure the content feed is free from outside manipulation”, according to Chew’s memo.Under Chinese law, Beijing has control over the export of algorithms. The country’s cyber security regulator previously said it had agreed a framework for the TikTok deal that included “licensing the algorithm and other intellectual property rights” to the US.This compromise has faced pushback from lawmakers who want to see TikTok shut down in the US or more completely severed from ByteDance.Additional reporting by Hannah Murphy in London