TikTok U.S. Spin-Off Closes With New CEO

TikTok’s U.S. spin-off closed on Jan. 22, 2026, forming TikTok USDS Joint Venture LLC with Adam Presser as chief executive. Oracle was named the trusted security partner to audit and secure U.S. user data and oversee the platform’s algorithm, fulfilling requirements of the 2024 divestiture law.

Deal Terms and Ownership

The transaction valued TikTok’s American operations at $14.0 billion. ByteDance retains about 20.0% ownership, while Oracle (ORCL), Silver Lake, and MGX each hold 15.0%. The remaining equity is distributed among other investors. The platform serves roughly 170 million U.S. users.

Data Security and Governance

Adam Presser, formerly TikTok’s head of operations and trust and safety, leads the new U.S. entity. The seven-member board includes TikTok CEO Shou Zi Chew, Oracle Executive Vice President Kenneth Glueck, Silver Lake Co-CEO Ergon Durban, and executives from TPG Global, Susquehanna International Group, DXC Technology, and MGX.

Oracle’s role as security partner covers auditing compliance with National Security Terms, replicating and retraining a U.S.-based version of the recommendation algorithm, and managing custody of U.S. user data. U.S. owners will control the algorithm, and ByteDance will have no access to U.S. user information or influence over the platform’s U.S. algorithm. Oracle also oversees data protection, content moderation, and software assurance.

Regulatory Sign-Off and Timing

A White House official confirmed that both U.S. and Chinese authorities approved the deal. The structure complies with the 2024 Protecting Americans from Foreign Adversary Controlled Applications Act, which requires ByteDance to divest TikTok’s U.S. business or face a ban. The law took effect in January 2025 and survived a Supreme Court challenge.

Vice President J.D. Vance said, "The most important thing is that it does protect Americans' data security and ensures TikTok is still accessible... the American entity and American investors will actually control the algorithm."

Under the agreement, ByteDance retains a minority stake but loses technical access to U.S. user data and influence over the U.S. algorithm. ByteDance may lease its algorithm to the new entity, with Oracle responsible for retraining any leased system. Reports indicate the existing U.S. TikTok app will be discontinued, and users will transition to a new American platform, as signaled in an internal memo circulated by TikTok’s CEO in December 2025.

The arrangement aims to satisfy the divestiture law, maintain service availability for American users, and place algorithmic oversight and data custody under U.S. control.