Okay, so here’s the tea on TikTok: The social media giant has officially inked a deal that’s been brewing, one that Donald Trump was championing. This means TikTok’s U.S. operations are getting a fresh look, selling off its American entity to a group of U.S. investors. We’re talking about a new “joint venture” here, primarily based in the States, with most of the owners and board members being American. It’s a big shift for the platform that keeps us all scrolling.
Remember the drama last year? There was this law demanding ByteDance, TikTok’s China-based parent company, either cut ties with its U.S. side or lose access to our app stores and web services. The original deadline was January 2025, but President Donald Trump, who actually wanted to ban TikTok way back in 2020, stepped in like he was wearing a cape, pushing that deadline back. Now, we’re looking at January 23, 2026, for the final word.
Donald Trump Signs Executive Order Paving Way For TikTok Deal Involving U.S. Investors
Fast forward to September 2025, Trump dropped an executive order to pave the way for this administration-brokered deal. The goal? Keep TikTok alive and well in the U.S., but under a shiny new corporate structure, owned and run by American investors. Word on the street from a senior White House official was that this new entity would literally copy TikTok’s famous algorithm, but run it solely on data from its U.S. users. That’s a major move for data privacy, sis.
And who’s stepping up for security? Cloud-computing bigwig Oracle is jumping in as a “trusted security partner.” They’re set to provide “top to bottom security” by hosting all American user data and even reviewing the app’s code. The mission? Make sure that algorithm is behaving itself and everything stays secure. This ain’t your average tech partnership; it’s about making sure our digital space is on lock.
TikTok Officially Signs Donald Trump-Backed Deal Selling Off Its U.S. Entity To Group Of American Investors Including Oracle, Silver Lake, And MGX
Axios dropped the official news on Thursday, December 18th, confirming the deal is signed! The lineup of investors includes Oracle Corporation, Silver Lake, and Abu Dhabi’s MGX, each grabbing 15% for a combined 45% stake in the U.S. entity. Meanwhile, current ByteDance investors are still in the mix, holding nearly a third of the new venture – 19.9% for ByteDance itself and 30.1% for its exiting affiliates. It’s a complex ownership pie, but essentially, America gets a bigger slice.
TikTok CEO Shou Zi Chew spilled more details in a memo to his employees, as reported by CNN. He shared:
“We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.
Pursuant to the Executive Order signed by U.S. President Donald J. Trump on September 25, 2025, the agreements specify that the U.S. joint venture will be majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and U.S. national security. The U.S. joint venture will be responsible for U.S. data protection, algorithm security, content moderation, and software assurance.”
He also reminded everyone that while the deal is signed, there’s still ‘more work to be done’ before the January 22, 2026 closing date. So, hold tight, Socialites!
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