After years of political drama and regulatory whiplash, TikTok has finally landed on a solution to stay alive in the United States. The company has signed binding agreements to create a new U.S.-based joint venture with major American investors, according to an internal memo reported by The Associated Press.

The New Ownership Breakdown

Here's how the pie gets sliced: A consortium of investors will own 50% of the new U.S. venture, with Oracle Corp. (ORCL), Silver Lake, and Emirati investment firm MGX each taking 15% stakes. ByteDance, TikTok's current parent company, will retain just 19.9% of the new entity. Another 30.1% goes to affiliates of existing ByteDance investors, though TikTok hasn't disclosed all the names involved.

The deal is expected to close on January 22, according to TikTok CEO Shou Zi Chew, who confirmed the agreement to employees in the memo and thanked them for navigating years of uncertainty.

Data, Algorithms, and Governance Get American Makeovers

The new entity isn't just about changing who owns what. It's designed to address national security concerns head-on. U.S. user data will be stored domestically on systems operated by Oracle. The algorithm powering TikTok's famously addictive content recommendations will be retrained using U.S. data to ensure those recommendations are insulated from foreign influence.

Governance also gets a patriotic overhaul. A seven-member board with a majority of American directors will run the show, operating under provisions specifically designed to protect Americans' data and U.S. national security. The U.S. venture will also handle content moderation and policies directly.

How We Got Here

This deal caps off a saga that's been running since the Trump administration first raised alarms about TikTok's Chinese ownership. The agreement follows bipartisan legislation signed by former President Joe Biden that threatened to ban TikTok unless it severed ties with China-based ByteDance.

The drama reached a fever pitch in January 2025 when TikTok briefly went dark ahead of a federal deadline. President Donald Trump then issued an executive order keeping the app operational while negotiations continued, buying time for this deal to come together.

TikTok and the White House did not immediately respond to requests for comments.

Market Reaction

Investors loved the news. Oracle (ORCL) closed Thursday at $180.03, up 0.88%, then jumped to $189.68 in after-hours trading, gaining 5.36%. That's a significant pop for a company now positioned as the infrastructure backbone of one of the world's most popular social media platforms.