TikTok has signed a binding agreement to sell its US business to a group of American and UAE-backed investors, securing the platform's future in the country after months of political and regulatory uncertainty. The deal brings together Abu Dhabi's sovereign AI fund MGX, US technology giant Oracle, and private equity firm Silver Lake, according to an internal company memo from CEO Shou Zi Chew.
TikTok US Sale: How the Deal Is Structured
The transaction is expected to close on January 22, Chew said in the memo. Under the new structure, a freshly created entity called TikTok USDS Joint Venture LLC will be established, designed to operate independently while meeting strict US data and national security requirements.
The ownership split marks a major shift in control. Oracle, Silver Lake, and MGX will collectively hold 50 per cent of the US entity, with each of the three firms taking a 15 per cent stake. Affiliates of existing ByteDance investors will own 30.1 per cent, while ByteDance itself will retain a 19.9 per cent minority stake — just below the threshold that would trigger the US ban law.
MGX: Abu Dhabi's High-Profile Entry Into Global Social Media
MGX, backed by the Abu Dhabi government, is a sovereign AI investment vehicle focused on advanced technologies and digital infrastructure. Its inclusion in the TikTok joint venture marks a high-profile UAE entry into one of the world's most influential social media platforms, and adds to a growing portfolio of strategic tech bets by Abu Dhabi in global markets.
Data Security and Governance Under the New Structure
According to the memo, the US venture will be built on TikTok's existing US Data Security framework and will have full authority over data protection, algorithm security, content moderation, and software assurance within the country. US user data will be stored locally through Oracle-managed systems, while TikTok's algorithm will be retrained exclusively using US user data to prevent external influence.
Oracle will additionally serve as the trusted security partner, auditing and validating compliance with agreed-upon national security terms.
Governance will also change significantly. The new entity will be overseen by a seven-member board with a majority of American directors, reinforcing compliance with US national security concerns.
Why the TikTok ByteDance Deal Happened
The deal follows legislation passed by the US Congress requiring TikTok's sale to a US-linked entity over fears related to data access by China-owned ByteDance. The law, signed by President Biden in April 2024, gave ByteDance until January 19 to divest or face a ban. With the binding agreement now signed, the long-running question over TikTok's ownership in the US appears close to resolution.
