TikTok’s United States operations have been sold to a newly formed joint venture, a significant development concluding a prolonged and politically charged effort by the US government to address national security concerns surrounding the popular video-sharing app’s Chinese ownership. The consortium leading this acquisition includes American technology giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment powerhouse MGX, establishing a new operational framework designed to safeguard American user data and national security interests. This move represents a pivotal resolution to a dispute that has spanned multiple presidential administrations and involved intense legislative scrutiny.

Under the terms of the agreement, the American-led consortium, comprising Oracle, Silver Lake, and MGX, is collectively set to acquire a 45 percent ownership stake in the US entity, with each firm holding an equal 15 percent share. Approximately one-third of the new venture will be held by affiliates of existing ByteDance investors, while TikTok’s Chinese parent company, ByteDance, will retain nearly 20 percent. The new entity, officially named USDS Joint Venture LLC, has a closing date of January 22 and will be overseen by a new seven-member board of directors, predominantly composed of American representatives, ensuring robust governance aligned with US strategic interests, as confirmed by TikTok CEO Shou Zi Chew.

The USDS Joint Venture LLC is mandated to assume comprehensive responsibility for critical operational aspects, including the meticulous management of user data, the implementation of content moderation policies, and the assurance of software integrity for American users. Oracle has been specifically designated as the “trusted security partner,” playing a crucial role in addressing and mitigating any potential national security concerns. A key provision of the agreement stipulates that the app’s highly valued algorithm will be shielded from “outside manipulation,” providing explicit assurances that the content, software, and data utilized by American users are secure and immune to foreign influence or control.

This divestiture culminates years of escalating pressure from Washington, driven by deep-seated concerns over the potential for the Chinese government to access sensitive American user data or exert influence over the content presented on the platform. The legislative foundation for this action was solidified with the “Protecting Americans From Foreign Adversary Controlled Applications Act,” a bipartisan measure passed by Congress and signed into law by President Joe Biden in 2024. This act explicitly mandated the sale, framing the app as a direct national security threat, with lawmakers and federal law enforcement agencies arguing that ByteDance’s continued ownership could facilitate data mining from millions of users or the dissemination of manipulative content.

TikTok initially mounted a vigorous defense against the forced sale, issuing strong statements that characterized the legislative actions as “outright censorship of the American people,” contending they were based on “flawed and hypothetical information.” The company pursued extensive legal challenges, including an appeal to a federal court which ultimately upheld the deadline for divestiture, paving the way for a potential Supreme Court review. In a significant, albeit unsigned, opinion issued in January, just hours prior to a presidential inauguration, the Supreme Court justices definitively affirmed the legality of the divestiture law, underscoring that “Congress has determined that divestiture is necessary to address its well-supported national security concerns.”

Former President Donald Trump played a prominent and often contradictory role throughout the protracted saga. His administration initially issued an executive order in his first term aiming to ban the platform entirely, a directive that TikTok successfully challenged in court. Subsequently, Trump’s stance evolved; he extended deadlines for TikTok to secure a US buyer and ultimately issued an executive order to formally approve a deal transferring control to an American business group. At a September Oval Office signing ceremony, Trump announced that Chinese President Xi Jinping had approved a proposed deal, valued at approximately $14 billion, which satisfied American national security requirements, though he also made notable comments about favoring “MAGA-related” content, while simultaneously assuring that “everyone’s going to be treated fairly.”

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