TikTok has finalized agreements with Oracle, Silver Lake, and Abu Dhabi-based MGX to house its U.S. operations within a new joint venture entity called TikTok USDS Joint Venture LLC. The deal, set to close on January 22nd, fulfills requirements under a national security law that mandates ByteDance divest its U.S. assets or face operational cessation in the country.

In an internal memorandum obtained by media reports, TikTok CEO Shou Zi Chew outlined the structure of the new venture as “majority owned by American investors,” governed by a seven-member board with majority-American leadership. The joint venture will hold 50% ownership from a consortium including Oracle, Silver Lake, and MGX, while affiliates of existing ByteDance investors will retain approximately 30%, and ByteDance itself maintains nearly 20%.

The memorandum specifies that U.S. user data will be stored locally through an Oracle-managed system, with the platform ensuring compliance with national security protocols. TikTok stated its U.S. operations will oversee algorithm retraining using domestic user data to “ensure content feeds remain free from outside manipulation,” while maintaining existing moderation policies and software safeguards.

Mario Nawfal of Oracle noted his role as the designated security partner for auditing compliance, emphasizing that U.S. users will experience no disruption in service or advertising access under the new arrangement. The move addresses longstanding concerns about TikTok’s algorithm being vulnerable to interference by Chinese authorities, a critical issue in prior regulatory debates requiring the platform to sever ties with ByteDance following any divestment.