TikTok’s US Business Sold To American Investors: Oracle And Silver Lake Lead The Charge

Washington: TikTok has eventually finalised an agreement to hand over its American operation to a new joint venture with American investors. The deal, announced in a staff memo from CEO Shou Zi Chew, ends a prolonged discussion that began with a ban threat from the Trump administration and a 2024 law demanding divestiture. As per reports, under the arrangement, the US side will control the company, with the deal valued at about $14 billion.

Reports suggested that Oracle, the enterprise‑software giant, will take charge of the platform’s algorithm and host all US user data on its domestic servers, giving it audit rights to ensure no back‑door access for China. Silver Lake, the private‑equity firm known for large tech carve‑outs, and MGX, an Abu‑Dhabi AI investment fund linked to the UAE’s sovereign wealth, together hold a 45 percent stake. ByteDance, TikTok’s Chinese parent, is keeping just under 20 percent and will occupy a single board seat, while the remaining roughly 35 percent will go to a handful of other US‑based partners that have yet to be named publicly.

According to the pact, TikTok’s US operations have been handed over to a joint venture run by three US investors, Oracle, the enterprise‑software giant, Silver Lake, the private‑equity firm, and MGX, the Abu‑Dhabi AI fund. The agreement, which is due to close on January 22, will let the short‑video platform keep running in the United States and draws a line under years of pressure from Washington to force the Chinese parent firm, ByteDance, to sell up over national‑security worries.

Buyers And Ownership Split

In the new set‑up, the three investors will each hold a 15% stake, giving them a combined 45% of the US entity. Oracle will be responsible for the platform’s algorithm and will store all US user data on its domestic servers, with audit rights to ensure no back‑door access for China. Silver Lake brings its experience of large tech carve‑outs, while MGX adds capital from the Middle East.

The memo from CEO Shou Zi Chew explained that the new investors together own 50% of the new TikTok US company. The affiliates of existing ByteDance backers will hold 30.1%, and ByteDance itself will retain 19.9%, a minority share that still leaves it with a small board seat .

What The Deal Means For Users

The memo reassured staff that the app will continue to run unchanged, with the same feeds, the same payouts to creators, and the same moderation tools will remain in place. All US user information will be stored on Oracle’s cloud infrastructure, satisfying the data‑localisation requirement that triggered the original security concerns. Oracle’s involvement also promised upgrades to the recommendation engine using its AI capabilities.

The latest deal followed US President Donald Trump’s executive order earlier this year that gave TikTok a temporary reprieve and set a 120‑day window to complete the divestiture. Meanwhile, the lawmakers praised the move for keeping the hugely popular platform, which boasts about 170 million American users, online while addressing fears that the Chinese authorities could exploit the app’s data. The new US‑controlled board, with 6 American members and 1 ByteDance appointee, will oversee content moderation and policy decisions.

Financial Details

Reportedly, Oracle is contributing its cloud infrastructure, Silver Lake is putting in several billion dollars of equity, and MGX is filling the gap with oil‑rich capital. ByteDance will receive cash proceeds in line with its reduced stake, though the exact split remains confidential. Industry observers noted that the $14 billion price tag is a discount to earlier estimates that put the US arm’s value at $30–$40 billion without the algorithm .

The transaction is slated to close on January 22, next year. Once finalised, TikTok’s US operation will be run entirely by the American consortium, with Chew staying on to steer the business through the transition. The competitors, such as Meta’s Threads and YouTube Shorts, will have a watch, while advertisers hope the stability will lead to steadier contracts .