lipflip – TikTok’s plan to sell its US business is approaching its final stage. The transaction could conclude as early as January 22. This development marks a critical moment for the platform’s future in the United States. The update came through an internal memo sent by TikTok CEO Shou Chew on December 18. The memo outlined how the company plans to avoid a long-threatened US ban. Several major outlets reviewed the document, including Reuters and The Hollywood Reporter.
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According to Chew, a new joint venture will assume control of TikTok’s US operations. The entity will operate under the name TikTok USDS Joint Venture LLC. A newly formed investor consortium will hold a 50 percent stake. Oracle, Silver Lake, and Abu Dhabi-based investment firm MGX will each acquire 15 percent. Other unnamed investors will take the remaining five percent.
Affiliates linked to certain existing ByteDance investors will control 30.1 percent of the venture. ByteDance itself will retain a 19.9 percent ownership stake. This structure ensures ByteDance no longer holds majority control. That condition is central to meeting US regulatory requirements. Financial terms of the transaction remain undisclosed. None of the parties have shared valuation details publicly.
The deal follows months of uncertainty surrounding TikTok’s legal status. A US law previously required ByteDance to divest its American business. Failure to comply could have forced app stores to remove TikTok. The app briefly went offline in January amid enforcement threats. Service resumed after then-incoming President Donald Trump pledged temporary non-enforcement. The administration sought time to finalize a compromise solution.
Algorithm Control and Data Security Shape TikTok’s US Future
At the core of the agreement, a central feature involves TikTok’s recommendation algorithm. According to Chew, the joint venture will control the algorithm used for US users. Moreover, the new owners plan to retrain the system using only US-based user data. In doing so, this step aims to prevent foreign influence or external manipulation. For years, national security concerns have driven US scrutiny of TikTok. In particular, lawmakers often cite data access risks tied to China-based ownership.
The investors will also oversee content moderation policies. Chew stated they will review and approve moderation standards. This oversight includes related enforcement and compliance processes. The change could affect how TikTok handles sensitive or political content. However, the company has not announced immediate policy revisions. Any changes are expected to roll out gradually.
For users, the transition may feel subtle at first. Industry analysts expect no sudden algorithm reset. Such a reset could disrupt engagement and alienate creators. TikTok’s recommendation engine is central to its success. New owners are unlikely to risk damaging user retention. Adjustments will probably occur incrementally over time.
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There are unresolved questions about the app’s technical future. Past reports suggested users might need a separate TikTok app. That possibility has not been confirmed. ByteDance has not announced any mandatory downloads or migrations. For now, users can expect continuity rather than disruption.
Looking ahead, the deal could set a precedent for global tech regulation. Governments may push similar ownership or data controls on foreign platforms. TikTok’s agreement reflects growing pressure on cross-border digital services. If completed, the transaction may stabilize TikTok’s US presence. It could also reshape how global tech companies manage sovereignty, data, and trust.