TikTok has signed a deal to type a brand new U.S. three way partnership managed by largely American traders that embody Oracle Company, Silver Lake and MGX, in accordance with an inside memo despatched by TikTok CEO Shou Chew and obtained by ABC Information.
This lastly begins the method of ending the years-long saga over TikTok. It comes after Congress handed a regulation final 12 months that requires TikTok to be banned within the U.S. if its Chinese language father or mother firm, ByteDance, doesn’t promote its U.S. entity to People.
Within the memo, Chew mentioned “there’s extra work to be performed” as they transfer in the direction of the cut-off date of January 22, 2026.
“We have now signed agreements with traders concerning a brand new TikTok U.S. three way partnership, enabling over 170 million People to proceed discovering a world of infinite prospects as a part of a significant world neighborhood,” Chew added.
Oracle, Silver Lake and MGX will every personal 15% of the brand new entity; 19.9% might be retained by ByteDance; 30.1% might be held by associates of present ByteDance traders, in accordance with the memo.
MGX relies within the United Arab Emirates. Oracle and Silver Lake declined to remark.
An individual shows a TikTok brand.
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Oracle is co-founded by Larry Ellison, who can also be its largest shareholder.
Privateness and free speech consultants have expressed concern concerning the deal, stating that the Ellison household controls CBS by Paramount, has tried to purchase Warner Bros, and has shut ties to President Trump.
Axios was the primary to report on the deal signing.
“Pursuant to the Govt Order signed by U.S. President Donald J. Trump on September 25, 2025, the agreements specify that the U.S. three way partnership might be majority owned by American traders, ruled by a brand new seven-member majority-American board of administrators, and topic to phrases that shield People’ information and U.S. nationwide safety,” the memo reads.
“The U.S. three way partnership might be accountable for U.S. information safety, algorithm safety, content material moderation, and software program assurance,” the memo provides.
It provides that Oracle would be the “trusted safety companion” accountable for auditing and validating compliance with the Nationwide Safety Phrases after the transaction is full.
In September, the White Home unveiled particulars of a “framework deal” between the U.S. and China to save lots of TikTok’s U.S. operations. On the time, a senior White Home official mentioned a “copy” of the algorithm — which is the key sauce that makes TikTok so addictive — might be introduced into the U.S. Joint Enterprise and overseen by Oracle, to adjust to the legal guidelines within the US and China.
