An Oracle-led group has officially taken charge of TikTok U.S. operations, effectively halting the looming threat of a nationwide ban.
ByteDance signed binding agreements to transfer majority control of the platform to this consortium of Western investors. This deal secures the app for its 170 million American users just weeks before a critical deadline.
Consequently, the platform no longer faces immediate shutdowns under the 2024 divestiture law.
The New Power Structure
A newly created entity, TikTok USDS Joint Venture LLC, now oversees the app’s domestic functions.
American and allied interests dominate the ownership structure. A group including Oracle, Silver Lake, and Abu Dhabi’s MGX controls an 80.1% majority stake. Conversely, ByteDance retains a minority share of just 19.9%.
This shift is not just financial; it fundamentally changes governance. The new board features seven seats, with American representatives holding the majority. The agreement restricts ByteDance to a single board appointment.
Operational Control vs. Revenue
While TikTok U.S. operations shift management, the money trail remains complex.
In an internal memo, CEO Shou Zi Chew clarified the division of labor. The new joint venture assumes full authority over:
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Content moderation
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Algorithm security
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Data protection protocols
However, the revenue engine—specifically advertising and e-commerce—stays with a separate division run by ByteDance. The joint venture will essentially sell its technology and data services back to this revenue arm for a fee.
Security and Political Fallout
The deal designates Oracle as the “trusted security partner.”
The tech giant will audit compliance and house sensitive user data in a domestic cloud. This arrangement satisfied President Trump, who stated the structure meets legal requirements.
Nevertheless, the deal has drawn sharp criticism.
Senator Elizabeth Warren blasted the agreement as a “billionaire takeover,” citing the close relationship between the President and Oracle’s Larry Ellison. Meanwhile, Representative John Moolenaar has already scheduled congressional hearings for 2026 to scrutinize the new leadership.
The investors expect to close the transaction on January 22, 2026.
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