TikTok’s $14B US Sale to Oracle-Led Consortium Finalized
TikTok CEO Shou Zi Chew announced on December 18, 2024, that the company has signed binding agreements to create a new US joint venture, ending years of uncertainty over the popular social media platform’s American operations. The deal, valued at approximately $14 billion, will transfer TikTok’s US business to TikTok USDS Joint Venture LLC with a closing date of January 22, 2026.
Under the agreement, Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively own 45% of the new entity as managing investors. ByteDance will retain just under 20% ownership, while approximately 30% will be held by affiliates of existing ByteDance investors. The joint venture will be responsible for retraining TikTok’s content recommendation algorithm using only US user data to ensure the feed is free from external manipulation.
The deal follows years of national security concerns and legislative pressure that culminated in a 2024 law requiring ByteDance to divest its US operations or face a ban. President Trump extended enforcement deadlines multiple times while negotiating the transaction, which he claims received approval from Chinese President Xi Jinping. The arrangement allows TikTok’s 170 million American users to continue accessing the platform.
Source: CNBC