WASHINGTON D.C. — In a definitive end to one of the most contentious tech battles in American history, TikTok has officially signed a deal to sell its U.S. operations to a consortium led by Oracle, Silver Lake, and MGX. The agreement, announced on December 18, 2025, ensures that the short-form video giant will avoid a permanent ban and continue operating for its 170 million American users under a new, domestic corporate structure.
The deal establishes a new entity, TikTok USDS Joint Venture LLC, which will be majority-owned and controlled by American interests. Under the terms of the agreement, the investor group—comprising Oracle, private equity firm Silver Lake, and the UAE-based investment firm MGX—will collectively hold a 45% stake. Another 30.1% will be held by existing ByteDance investors, while the original parent company, Beijing-based ByteDance, will retain 19.9%. This specific threshold is designed to comply with the Protecting Americans from Foreign Adversary Controlled Applications Act, which mandates that foreign adversary control must fall below 20%.
Central to the deal is the “Project Texas” framework, which has been significantly expanded. Oracle will serve as the “trusted technology provider,” hosting all U.S. user data on its domestic servers and conducting “top-to-bottom” code reviews. Furthermore, the app’s famous recommendation algorithm will be “copied and retrained” solely on U.S. data to prevent foreign influence, though ByteDance will still provide the underlying technical updates under license.
The signing follows a year of dramatic uncertainty. After a brief voluntary shutdown in January 2025, President Donald Trump issued a series of executive orders—the most recent on September 16, 2025—to delay enforcement of the ban while negotiations continued. President Trump noted that he personally discussed the arrangement with Chinese President Xi Jinping, ensuring that the Chinese government would not block the necessary export licenses for the technology.
While some lawmakers remain skeptical about the depth of the “divestiture,” TikTok CEO Shou Zi Chew hailed the deal as a path forward that “protects national security while preserving the community our creators love.” The transaction is expected to close on January 22, 2026, marking a new chapter for social media governance in the United States.
Sources
- NPR: TikTok signs deal to give U.S. operations to Oracle-led investor group
- CBS News: TikTok signs deal for sale of U.S. entity to American investors
- Associated Press: TikTok signs deal to sell US unit to American investors
- White House: Executive Order – Saving TikTok While Protecting National Security
- Mashable: TikTok signs U.S. sale deal after years of delay and ban threats
Disclaimer
Artificial Intelligence Disclosure & Legal Disclaimer
AI Content Policy.
To provide our readers with timely and comprehensive coverage, South Florida Reporter uses artificial intelligence (AI) to assist in producing certain articles and visual content.
Articles: AI may be used to assist in research, structural drafting, or data analysis. All AI-assisted text is reviewed and edited by our team to ensure accuracy and adherence to our editorial standards.
Images: Any imagery generated or significantly altered by AI is clearly marked with a disclaimer or watermark to distinguish it from traditional photography or editorial illustrations.
General Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service. In no event shall South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service.
The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice. The Company does not warrant that the Service is free of viruses or other harmful components.
