Table of Contents
Who owns TikTok now and what does the Oracle deal mean for your data?
The Strategic Restructuring of TikTok US: An Analysis of the ByteDance Divestment
The protracted regulatory conflict regarding TikTok’s operations in the United States reached a definitive turning point on December 18, 2025. ByteDance, the Beijing-based parent company, agreed to divest a controlling stake in its US subsidiary. This transaction establishes the “TikTok USDS Joint Venture LLC,” effectively transferring majority ownership to a consortium of American interests and strategic partners. This move aims to satisfy national security requirements outlined in the Executive Order signed by President Trump in September 2025.
The Transaction Structure
The agreement necessitates a significant restructuring of shareholder equity. While ByteDance retains a minority interest, the governance power shifts toward US-aligned entities. The deal is scheduled for finalization on January 22, 2026.
Based on internal memoranda reviewed by financial analysts, the new ownership composition of TikTok’s US subsidiary is structured as follows:
- 45% Acquisition by US Consortium: A group led by Oracle and Silver Lake (Larry Ellison’s investment firm) secures the largest single block of new equity. This tranche also includes MGX, an Abu Dhabi-based state investment fund.
- 30% Retention by Strategic Partners: Existing investors allied with ByteDance will hold this portion. These entities are technically distinct from ByteDance’s core corporate structure.
- 20% Retention by ByteDance: The original Chinese parent company keeps a minority stake.
Note: The remaining equity distribution accounts for the complex corporate structures detailed in financial filings.
Operational Control and Data Sovereignty
The primary objective of this sale is the segregation of US user data from Chinese jurisdiction. The newly formed entity, TikTok USDS Joint Venture LLC, assumes full responsibility for the following critical areas:
- Data Privacy: Management of all US user information.
- Algorithm Security: Oversight of the recommendation engine code.
- Content Moderation: Authority over community guidelines and censorship protocols.
- Software Integrity: Security protocols for the application infrastructure.
This structure designates Oracle as the likely “trusted technology partner,” tasked with auditing the source code and hosting user data on domestic servers.
Regulatory and Political Implications
This agreement concludes years of diplomatic and legal friction. Successive US administrations argued that ByteDance’s ownership presented a national security risk due to potential data access by the Chinese government. The September 2025 Executive Order served as the catalyst, mandating the separation of TikTok’s US operations.
While this deal ostensibly resolves the threat of a nationwide ban, industry observers note potential pitfalls. Critics argue that retaining any link to ByteDance—specifically the 20% stake and the involvement of legacy partners—may not fully insulate the platform from foreign influence. Furthermore, consolidation of control under major US technology incumbents raises new questions regarding market competition.
Corporate Background: ByteDance
Understanding the scale of this transaction requires context regarding the seller. ByteDance evolved from a modest startup in 2012, founded by Zhang Yiming and Liang Rubo in Beijing’s Zhongguancun district. Their initial success came from Toutiao, a news aggregation platform.
The company achieved global dominance following the 2016 launch of Douyin and its international counterpart, TikTok, in 2017. With over 1.5 billion monthly active users and a valuation reaching $400 billion, ByteDance stands as one of the world’s most valuable technology firms. This divestment represents a rare instance of a global tech giant being forced to fracture its operations due to geopolitical pressure.