Introduction to TikTok’s US Arm Sale
TikTok’s Chinese owner has signed a deal to sell the company’s US arm to American investors, ensuring the video platform can continue to operate in the US. The deal is expected to close on January 22, 2026.
Background on the Sale
The sale was prompted by a law signed by Joe Biden last year, which required TikTok’s Chinese owners to sell the US arm or face being blocked. This law was introduced amid fears that ByteDance could hand over user data to the Chinese government, despite the company’s assurances that this would not happen. Critics also expressed concerns that Chinese authorities could manipulate TikTok’s algorithms and influence what content users see.
The Sale and Its Implications
ByteDance will sell just over 80% of the company’s US assets to three major investors: Oracle, Silver Lake, and MGX. These investors will form a new company called TikTok USDS Joint Venture LLC. The deal enables over 170 million Americans to continue using the platform as part of a vital global community.
Ownership Structure
The company will be 50% owned by the US investor consortium, with subsidiaries of certain existing ByteDance investors holding 30.1% and ByteDance itself retaining 19.9%. It will have a new, seven-member, majority-American board and be subject to conditions that protect Americans’ data and U.S. national security.
Data Storage and Security
Data from US users is stored locally, addressing concerns about data security and national security. The new ownership structure and board are designed to ensure that TikTok’s operations in the US are secure and transparent.
