TikTok has moved closer to restructuring its presence in the United States after reaching an agreement to separate its US operations into a new company led by predominantly American investors.
The arrangement is intended to satisfy a US law that requires the popular video app to cut ownership ties with its Chinese parent company, ByteDance, or risk being banned nationwide. TikTok chief executive Shou Chew told employees that the company has signed investor agreements for the new US-focused entity, although the transaction has not yet been finalized.
The planned joint venture will be controlled equally by a group of investors that includes Oracle, Silver Lake, and Emirati-backed investment firm MGX. Existing ByteDance investors will collectively hold just over 30 percent of the new company, while ByteDance itself will keep a minority stake of 19.9 percent. The parties are aiming to complete the deal by January 2026.
Under the proposed structure, the US business will manage its own recommendation algorithm using American user data, with Oracle responsible for overseeing data storage. The new entity will also take charge of moderating content for US users, while ByteDance’s global operations are expected to continue handling e-commerce, advertising, and marketing.
The agreement remains subject to regulatory approvals in both Washington and Beijing. While US officials have indicated the deal aligns with national security requirements, Chinese authorities have not yet publicly confirmed their approval.
