TikTok completes deal to operate in the US
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The news: TikTok has avoided a US ban after the social media platform and Chinese parent company ByteDance established a US entity with investments from Oracle, private equity firm Silver Lake Management and Abu Dhabi-based investment company MGX.
The context: The new US entity will be governed by a seven-member majority US board, including TikTok chief executive Shou Chew, who will continue to lead the global business. The new CEO of the US entity will be TikTok’s incumbent head of operations, trust and safety Adam Presser.
Ongoing cloud provider Oracle is tasked with ensuring TikTok complies with US law.
The completion of the deal ends a multi-year geopolitical and regulatory conflict, which included the passing of US legislation in 2024 that would ban TikTok unless it was sold off by ByteDance.
A January 2025 deadline to avoid a ban has been extended on several occasions. In September 2025, US President Donald Trump initially announced the deal and signed an executive order that declared it complied with legislation.
While the value of the deal has not been explicitly disclosed, US vice president JD Vance previously said it would value the new US company at about USD14 billion ($20.5 billion).
Oracle, Silver Lake and MGX will own 50% of the new TikTok US entity. Existing ByteDance investors will have a 30.1% interest in the company while ByteDance will own 19.9%.
The source: Bloomberg
