TikTok avoids a ban in the US: ByteDance signs a major investment deal with Oracle, Silver Lake, and MGX
After many months of negotiations and political battles over national security,ByteDance, the owner of TikTok, and a consortium of international investors have reached an agreement that allows the app to continue operating in the US market and effectively cancels the ban that had threatened it. The deal provides for the creation of a new joint venture, TikTok USDS Joint Venture LLC, in which major technology and investment players will gain control over TikTok’s key assets in the United States.
Under the ownership structure, each of the leading investors—Oracle, Silver Lake, and the Abu Dhabi–based fund MGX—will hold approximately 15%, while ByteDance’s stake in the new entity will be limited to around 19.9%, the maximum level permitted for a foreign company under US law. The remaining shares will go to affiliated investors and be distributed among other minority holders.
According to the terms of the agreement, the transaction must be completed by January 22, 2026, and the new governing body will be responsible for user data storage, algorithm security, content moderation, and compliance with US regulatory requirements. Some analysts note that this places TikTok on a more stable legal footing in the US and removes the uncertainty the platform has faced in recent years.
Official comments from Oracle and Silver Lake remain limited, but positive market reaction is already evident: Oracle shares, for example, rose following news of the agreement. The deal itself is seen as a rare example of how regulatory pressure can be transformed into a major corporate and financial transaction while preserving a global brand’s presence in a key market.
Official TikTok website: www.tiktok.com
Official Oracle website: www.oracle.com
