TikTok is restructuring its U.S. business after ByteDance agreed to transfer operational control to a new joint venture dominated by American and international investors, marking a significant step toward compliance with U.S. legislation targeting foreign ownership of sensitive digital platforms.

The new structure gives investors including Oracle, Silver Lake and MGX a combined 80.1% ownership, while ByteDance keeps a minority position below the 20% threshold required under U.S. law. The joint venture will manage U.S. user data, backend systems and algorithm oversight, according to an internal company memo.

ByteDance-controlled entities will continue to handle certain commercial activities, including advertising and e-commerce, under separate arrangements. Sources familiar with the matter said the joint venture will receive compensation for technology and data services, though details remain confidential.

The transaction follows years of political pressure and failed attempts to force a sale of TikTok’s U.S. assets. Lawmakers from both parties have raised concerns about the app’s data practices and potential foreign influence. While the deal has been framed as resolving those risks, some policymakers say clarity is still needed on algorithm ownership and long-term governance.

https://www.reuters.com/business/american-investor-consortium-acquire-tiktok-us-entity-axios-reports-2025-12-18/