Jamwaktu.com – Short-form video platform TikTok has officially reached an agreement to sell its US operations to a consortium of US-based investors, including Oracle, Silver Lake, and MGX. The deal, announced in an internal memo to employees by TikTok CEO Shou Zi Chew, is scheduled to close on January 22, 2026, ending years of speculation about the fate of the platform, which boasts more than 170 million active users in the US.
This decision comes after years of political pressure, legislation, and national concerns over TikTok’s relationship with its Chinese parent company, ByteDance. The Chairman of the Board of Directors and US government negotiators have long raised concerns about data security and the potential for foreign governments to access sensitive user information.
New Ownership Structure and Data Protection
Under the agreement, the US-based investor consortium will take majority ownership of TikTok’s newly formed US entity. Oracle, Silver Lake, and MGX will each own approximately 15% of the new company, while ByteDance will retain approximately 19.9% of the shares, the maximum amount permitted for foreign holders. The remainder will be held by affiliates of other investors.
One of the most important points of this deal is the protection of US user data. The data of over 170 million local users will be stored domestically, managed by Oracle, which is responsible for data security and compliance with US regulations. Furthermore, the app recommendation algorithm, which is the secret to TikTok’s user experience, will be retrained with US datasets to reduce the risk of foreign interference.
Public and Political Reaction
This announcement has received a mixed response. On the one hand, many technology observers and legislators in the US welcomed the deal as a compromise that allows TikTok to continue operating without violating strict national security laws. Some analysts believe the deal could set an important precedent for how global technology platforms navigate data security requirements and foreign ownership.
On the other hand, some critics have expressed concern that the deal still gives ByteDance and foreign parties indirect influence over the new entity, despite a small ownership percentage. Some senators and government figures have even warned about the risks of social media being controlled by billionaires or large corporations in the US digital information landscape.
Impact on the Tech Industry
The deal to sell TikTok’s US business has the potential to have a domino effect on the global technology sector. First, it demonstrates the increasing regulatory pressure on foreign technology companies, particularly regarding access to and control of user data. This joint venture model could serve as an example for other companies facing similar issues related to foreign ownership and data nationalism.
Second, for investors in the technology sector, this move signals that large platforms like TikTok remain financially attractive despite political pressure. Share prices of companies like Oracle even surged after news of the sale, demonstrating market optimism about the growth potential of data and cloud services, which are increasingly important in the digital age.
Implications for Users and Creators
For millions of users and content creators in the US, this sales decision means TikTok’s continued operations in its largest international market are assured. Previously, the threat of a total ban on TikTok in the US had left many creators and businesses worried about losing a key platform for reaching audiences. With the completion of the sale, the risk of service outages has been averted.
However, there are also concerns about how this structural change will impact algorithms, content orientation, and user experience, given the involvement of a new party in determining content policy and recommendation technology.
Conclusion
The agreement between TikTok and a consortium of US investors marks a crucial moment in the history of social media and global technology. With a more US-based ownership structure and tighter controls over user data, this move is designed to alleviate lingering regulatory concerns. However, the political, economic, and business dynamics behind this deal suggest that going forward, data security and control of digital platforms will remain a major concern for governments, businesses, and users worldwide.
