TikTok Strikes US Sale Deal With Oracle, Silver Lake, and UAE’s MGX
The deal redraws TikTok’s US operations around local data, algorithm oversight, and majority-American governance.
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TikTok has signed binding agreements to sell its US business to a consortium of investors led by Oracle, Silver Lake, and Abu Dhabi–based MGX, which will enable the platform to continue operating in the United States amid ongoing national security concerns.
According to an internal memo from TikTok chief executive Shou Zi Chew, the deal is expected to close on January 22. Under the proposed structure, the new TikTok US joint venture will be majority-owned by a group of investors, with Oracle, Silver Lake, and MGX each holding 15% stakes, collectively accounting for 50% ownership. Affiliates of existing ByteDance investors will hold a 30.1% stake, while ByteDance itself will retain a 19.9% minority stake.
The transaction is designed to address US government concerns over data security and foreign influence, which last year culminated in legislation requiring TikTok to divest its US operations or face a nationwide ban. That law was driven by fears that ByteDance, TikTok’s China-based parent company, could be compelled to share US user data with the Chinese government—allegations the company has repeatedly denied.
Under the new arrangement, TikTok’s US business will operate as an independent entity, built upon its existing US data security organization. The venture will have authority over US data protection, algorithm security, content moderation, and software assurance, Chew said.
A new seven-member board, with a majority of American directors, will oversee the company, alongside safeguards intended to protect U.S. national security.
Oracle will play a central role in the new structure. All US user data will be stored domestically on systems operated by the company, and TikTok’s recommendation algorithm will be retrained exclusively on US user data to prevent external manipulation of the content feed.
MGX’s involvement underscores the growing role of sovereign-backed AI investment vehicles in shaping global technology infrastructure. Established by the Abu Dhabi government, MGX focuses on investing in foundational technologies, including data, compute, and artificial intelligence—areas that increasingly intersect with geopolitical considerations.
The agreement, if completed as planned, would bring an end to months of uncertainty over TikTok’s future in the US, while offering a test case for how governments may attempt to ring-fence digital platforms along national lines without fully dismantling their global operations.
