TikTok has successfully finalised a $14 billion deal to create a US-based subsidiary, averting a nationwide ban on the popular video-sharing platform that had been looming since 2024.
The new ownership structure features:
- US private equity firm Silver Lake
- Abu Dhabi-based artificial intelligence company MGX
- Tech giant Oracle (co-founded by Larry Ellison, an ally of US President Donald Trump)
Each of the three firms will hold a 15% stake in the US joint venture. TikTok’s Beijing-based parent company, ByteDance, will retain a stake of just under 20%, while the Dell Family Office (investment arm of Dell Technologies chairman and CEO Michael Dell) is also participating.
The agreement follows legislation passed by Congress in April 2024 requiring TikTok to be sold to US owners by January 19, 2025, or face a ban, citing national security concerns over the app’s ties to China.
President Trump delayed enforcement several times during negotiations and signed an executive order in September 2025 approving the framework, granting additional time to finalise terms.
The deal aligns with an internal memo from TikTok CEO Shou Zi Chew last month, indicating completion by Thursday.
Key governance changes:
- TikTok’s US operations will function as an independent entity overseen by a seven-member board:
- Shou Zi Chew
- Oracle Executive Vice President Kenneth Glueck
- Timothy Dattels (senior adviser at TPG Global)
- Mark Dooley (managing director at Susquehanna International Group)
- Silver Lake co-CEO Egon Durban
- DXC Technology CEO Raul Fernandez
- David Scott (chief strategy and safety officer at MGX)
- Adam Presser, TikTok’s head of operations and trust and safety, will serve as CEO of the new joint venture.
Trump welcomed the deal on Truth Social, describing it as a win for American investors and the platform’s future in the US. He said Chinese President Xi Jinping had ultimately approved the agreement, thanking him for cooperation.
While Trump called it a “qualified divestiture” fully severing ByteDance’s control, Chinese officials responded cautiously, stating any agreement must comply with Chinese laws and balance all parties’ interests.
Lawmakers who raised national security concerns said they would continue scrutinising the deal to ensure compliance, though some signalled willingness to accept assurances on surveillance and content manipulation risks.
Vice President JD Vance highlighted that the US entity would control TikTok’s algorithm — a central negotiation issue — with the system retrained and updated using American user data, hosted and managed by Oracle in its US-based cloud infrastructure.
Critics remain sceptical. Michael Sobolik of the Hudson Institute argued Beijing may still retain significant leverage despite the divestment.
The deal is expected to keep TikTok operational in the US while reshaping its governance, data controls, and ownership under American oversight.
TikTok survives the ban threat — $14bn US subsidiary deal sealed with Oracle, Silver Lake & MGX. Algorithm control shifts to American hands. Big win or ongoing risk? 📱🇺🇸
#V3Edge #VDM #VeryDarkMan #TikTokDeal #OracleTikTok #TrumpTikTok #ByteDance #NaijaNews #USChinaTech #NaijaGist #SocialMediaBanAverted #DataSecurity
