TikTok, parent ByteDance form JV to transfer parts of US business to investors Oracle, Silver Lake and MGX

According to Bloomberg, video sharing platform TikTok and its parent company ByteDance have formed a joint venture to transfer some of TikTok’s operations in the US to non-Chinese owners in order to comply with the Trump administration’s agreement allowing it to continue in the US.

It was stated that TikTok will manage a newly created US entity with three managing investors: US software giant Oracle Corp., private equity firm Silver Lake Management LLC and Abu Dhabi-based investment company MGX.

According to the agreement, ByteDance will lease a copy of its content algorithm to the US organization so that it can retrain the new algorithm on US user data.

TikTok begins process to comply with Trump deal

According to a Bloomberg report, the agreement, announced in September 2025, was initiated to address national security concerns and prevent the popular social media platform used by more than 200 million Americans from being banned.

He said the sale would result in years of back-and-forth wrangling that threatened to shut down TikTok in the United States. The move to ban the app in the USA was passed by Congress in 2024; It was conditional on parent ByteDance selling the app to a US company.

However, before that, US President Donald Trump tried to ban the practice in 2020 during his first term in the White House, but failed.

The reason given was concerns that the Chinese government could abuse access to US user data or push Beijing’s preferred narratives. Over the years, TikTok has stated that neither happens.

(With input from institutions)