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TikTok has signed a deal to spin off its American business, according to reporting from Associated Press and others. This should keep the popular social media app available in the US for good, capping off years of drama.
We now have some new data as to the specifics of the deal. Nearly 50 percent of assets will be split between three companies. Oracle, Silver Lake and MGX will each control around 15 percent of the newly-formed entity. It's worth noting that MGX isn't an American company at all, but rather Abu Dhabi's state-owned investment firm.
The rest will remain in the hands of affiliates of TikTok's parent company, ByteDance. That company will also take a direct ownership stake of around 20 percent. US platform operations will be managed by a seven-member board of directors. The majority of this board will be Americans.
US data will be stored under a system operated by Oracle. That company is run by Larry Ellison, a
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Remember back in September when President Donald Trump signed an executive order that seemingly finalized some of the terms of a deal to spin off TikTok's US business? Three months later, that same deal is apparently one step closer to being official.
According to Bloomberg, TikTok CEO Shou Chew told employees that TikTok and ByteDance had signed off the agreement for control of TikTok's US business. It sounds like terms of the deal are roughly the same as what Trump announced earlier this year. A group of US investors, including Oracle, Silver Lake and MGX will control a majority of the new entity while ByteDance will keep a smaller stake in the venture.
According to Chew's memo, the deal is expected to close January 22, 2026. "Upon the closing, the US joint venture, built on the foundation of the current TikTok US Data Security (USDS) organization, will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance," he wrote according to Bloomberg. TikTok didn't immediately respond to a request for comment.
Notably, it's still not clear where Chinese officials stand on the deal. Trump said back in September that China was "fully on board," but subsequent meetings between the two sides have so far produced vague statements. In October, China's Commerce Ministry said it would "work with the U.S. to properly resolve i
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