TikTok’s U.S Operations Head Toward January Sale in Oracle Backed Deal

TikTok is preparing to finalize the sale of its U.S. operations in January as part of a major agreement involving an Oracle-led investment group, according to a report by Axios. The newly formed entity, TikTok USDS Joint Venture LLC, will oversee the platform’s U.S. presence and regulatory compliance.

Under the proposed structure, Oracle, Silver Lake, and UAE-based investment firm MGX will collectively control 45 percent ownership of TikTok’s U.S. business. ByteDance, TikTok’s China-based parent company, will retain just under 20 percent, while current investors will continue holding the remaining stake.

The U.S. consortium will take full responsibility for data security, content moderation, and algorithm oversight within the country. A key component of the agreement involves retraining TikTok’s recommendation algorithm exclusively on U.S. user data, ensuring that the content feed remains protected from foreign influence or external manipulation.

Oracle has been assigned a central role in the deal, including the responsibility to audit and verify compliance with U.S. national security requirements. This oversight aligns with the government’s demand for stronger safeguards around user data and platform operations.

Although TikTok USDS Joint Venture LLC will function as an independent organization, TikTok’s global U.S. entities will continue to manage broader product compatibility, along with e-commerce services, advertising, and marketing operations worldwide.

This sale enables TikTok to remain active in the U.S. market while meeting the requirements of the 2024 Protecting Americans From Foreign Adversary Controlled Applications Act, which mandated that ByteDance divest TikTok’s U.S. business or face a nationwide ban.

Earlier this year, TikTok briefly went offline in January before former President Donald Trump issued an executive order granting a temporary extension. That deadline has since been extended multiple times to allow negotiations to conclude. The finalized agreement is expected to take effect on January 22, marking a pivotal moment for TikTok’s future in the United States.