TikTok USDS

History

2025: ByteDance sells TikTok USDS to Americans

In December 2025, a deal was initiated to sell the American division of the social network TikTok. The Chinese company ByteDance, which owns the platform, has entered into an agreement with a consortium of American investors including Oracle, Silver Lake and the MGX fund.

According to an internal memorandum from TikTok CEO Shou Tzu Chu, investors will be given control of the new joint venture in the United States. The transaction completion date is set for January 22, 2026.

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Фото: Reuters

The memorandum states that after the closure of the transaction, the joint venture will begin operation as an independent structure. His powers will include management of user data protection in the United States, control of recommendation algorithms, moderation of published content and software support.

The agreement was the result of pressure from the American authorities. In early 2024, President Joe Biden signed a law requiring ByteDance to sell American businesses. Later, on September 25, 2025, President Donald Trump signed a decree detailing the terms of the transfer of control to American corporations, which avoided a complete blocking of the service.

According to ABC News, under the terms of the deal, Oracle, Silver Lake and MGX will receive 15% each in the new company TikTok USDS. Another 30.1% will be distributed among affiliates of current ByteDance investors. The Chinese company will retain a 19.9% stake.

TikTok CEO Shou Tzu Chu said the agreement will allow more than 170 million users in the United States to continue using the platform. Chu's memo also states that Oracle will perform the function of a "trusted security partner" responsible for auditing compliance with data protection conditions.^[1]

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