TikTok has officially signed a binding agreement to form a new U.S.-based joint venture, effectively avoiding a nationwide ban that would have seen the app scrubbed from the Apple App Store, and Google Play Store, as reported by The Hollywood Reporter. Under the new arrangement, a consortium of prominent investors including Oracle, Silver Lake, and the Abu Dhabi-based firm MGX will take a significant ownership stake. These three will each control 15% of the new entity, totaling a 45% share of the U.S. operations. By shifting majority control to these partners, TikTok satisfies federal requirements to move away from total foreign ownership.
To comply with U.S. national security laws, TikTok’s parent company, ByteDance, will see its direct stake capped at 19.9%. The remaining shares will be held by affiliates of existing investors, ensuring a more localized corporate structure. This move is designed to finalize a transition that has been in limbo for years, with the deal expected to officially close on January 22, 2026.
One of the most critical technical aspects of this deal involves the “secret sauce” behind TikTok: its recommendation algorithm. As part of the security requirements, the algorithm will be retrained specifically on U.S. user data to prevent any potential outside manipulation. Furthermore, all sensitive data for American users will be stored locally on Oracle’s cloud infrastructure.
The new U.S. venture will be overseen by a seven-member board of directors, the majority of whom will be American citizens. This board will have full authority over content moderation, software assurance, and data protection policies within the country. While the user experience on your iPhone will likely remain the same, the backend security measures are undergoing a massive, domestic-focused overhaul.
Stay updated with the latest news on this by downloading the Appleosophy App from the App Store or by visiting our website.
