TikTok, Oracle and Allies Close U.S. Joint Venture as Supreme Court–Backed Divest‑or‑Ban Law Takes Effect
TikTok, Oracle and a consortium of U.S. investors have closed a deal to form TikTok USDS Joint Venture LLC — a U.S.‑based entity in which Oracle, Silver Lake and MGX each hold ~15%, ByteDance retains a 19.9% stake, the Dell family office is an investor, and the company will be led by CEO Adam Presser and governed by a seven‑member, majority‑American board that includes TikTok CEO Shou Chew. The agreement, reached as the Supreme Court‑backed divest‑or‑ban law took effect, mandates U.S. user data be stored in an Oracle‑run U.S. cloud, requires the recommendation algorithm to be retrained on U.S. data under defined safeguards and third‑party audits, and has prompted legal questions about ByteDance licensing its algorithm to the new U.S. entity; President Trump publicly praised the settlement.
📌 Key Facts
- TikTok has formally closed a deal to create a new American version of the app operated by a U.S. joint venture with Oracle, Silver Lake and MGX; final agreements were signed to form the entity.
- The new company is named TikTok USDS Joint Venture LLC and will follow the governance laid out in President Trump’s September 2025 executive order.
- Ownership and investors: Oracle, Silver Lake and MGX each hold 15% stakes; the Dell Family Office is an additional investor; ByteDance will retain a 19.9% ownership share.
- Leadership and board: Adam Presser, TikTok’s former head of operations and trust & safety, will serve as CEO; the venture will be overseen by a seven‑member, majority‑American board that includes TikTok CEO Shou Chew and representatives from TPG Global, Susquehanna, Silver Lake, DXC Technology, Oracle and MGX.
- Data and algorithm safeguards: U.S. user data will be stored locally in an Oracle‑run secure U.S. cloud and subject to third‑party cybersecurity audits; the recommendation algorithm will be retrained and updated on U.S. data, with ByteDance licensing its algorithm to the U.S. entity for retraining.
- Legal question: The licensing/cooperation around the recommendation algorithm raises open legal issues because the U.S. divest‑or‑ban law bars "cooperation with respect to the operation of a content recommendation algorithm."
- Background and political context: The divest‑or‑ban law (signed with a January 2025 deadline) took effect after the Supreme Court unanimously upheld it; TikTok briefly went dark in the U.S. before this deal framework was finalized under Trump’s second term, and President Trump publicly praised the deal—thanking China’s Xi, crediting Gen Z creators, and saying he helped keep the app alive.
📰 Source Timeline (4)
Follow how coverage of this story developed over time
January 23, 2026
5:59 PM
TikTok strikes deal with non-Chinese investors for U.S. app
New information:
- Names the new U.S. entity as TikTok USDS Joint Venture LLC and states it will follow governance laid out in Trump’s September 2025 executive order.
- Clarifies ownership: Oracle, MGX and Silver Lake are the three managing, majority investors; the Dell Family Office is an additional investor, and ByteDance will keep just under a 20% stake.
- Details the seven‑member, majority‑American board and lists all directors by name, including Shou Chew and representatives from TPG Global, Susquehanna, SilverLake, DXC Technology, Oracle and MGX.
- Spells out that the 2024 divest‑or‑ban law’s deadline passed, the Supreme Court unanimously upheld the law, and TikTok briefly went dark in the U.S. before this deal framework was finalized under Trump’s second term.
- Quotes TikTok’s statement that U.S. user data will be housed in Oracle’s secure U.S. cloud and subject to third‑party cybersecurity audits, and notes Trump is explicitly crediting Gen Z TikTok creators for his 2024 'youth vote' performance as a rationale for 'saving' the app.
4:34 AM
TikTok finalizes deal to form new American entity
New information:
- AP/NPR piece confirms the deal has formally closed, with TikTok signing final agreements with Oracle, Silver Lake and MGX to create the new U.S. joint venture.
- Details specific equity stakes: Oracle, Silver Lake and MGX each hold 15%, while ByteDance keeps a 19.9% ownership share in the new TikTok U.S. entity.
- Names Adam Presser, TikTok’s former head of operations and trust and safety, as CEO of the new venture and notes a seven‑member majority‑American board that includes TikTok CEO Shou Chew.
- Specifies that U.S. user data will be stored locally in an Oracle‑run system and that the recommendation algorithm will be retrained and updated on U.S. data, under new safeguards.
- Clarifies that ByteDance will license its algorithm to the U.S. entity for retraining, raising open legal questions because the U.S. law bars 'cooperation with respect to the operation of a content recommendation algorithm' between ByteDance and the new owner.
- Adds Trump’s reaction from Davos week: he publicly praises the deal on Truth Social, thanks China’s President Xi for 'approving' it and says he hopes to be remembered by TikTok users for keeping the app alive.
1:45 AM
TikTok finalizes deal to form new U.S. unit with major American investors
New information:
- TikTok has finalized the creation of a new American version of the app operated by a U.S. joint venture with Oracle, Silver Lake and MGX.
- Former TikTok head of operations and trust and safety Adam Presser will serve as CEO of the new TikTok U.S. joint venture.
- The new U.S. venture will be overseen by a seven‑member, majority‑American board of directors that includes TikTok CEO Shou Chew.
- TikTok states the new unit will operate under 'defined safeguards' covering data protections, algorithm security, content moderation and software assurances for U.S. users.
- The piece recounts that Biden signed the original divest‑or‑ban law with a January 2025 deadline, TikTok briefly went dark, and Trump’s first‑day executive order kept the app running while his team negotiated the sale.