TikTok Agrees to Sell U.S. Division to American Investors
On December 18, 2025, TikTok finalized an agreement to sell its U.S. operations to a consortium mainly consisting of American investors. This strategic deal represents a significant shift in the ownership structure of the popular video app, which has been operating under scrutiny over its ties to China.
TikTok’s New U.S. Structure
The new entity will be primarily controlled by Oracle, a major software company associated with billionaire Larry Ellison, along with private equity firm Silver Lake and the UAE’s state-backed investment firm MGX. Together, these groups will hold 45% of TikTok’s U.S. operations.
- Oracle: Primarily responsible for data oversight.
- Silver Lake: Involved in investment and operational strategy.
- MGX: Acts as a financial backer with ties to government interests.
About one-third of the new U.S. TikTok entity will be retained by existing ByteDance investors, with an additional 20% held by ByteDance itself. A seven-member board of directors, predominantly American, will oversee operations.
Data and Content Moderation Changes
Under the terms of the sale, TikTok’s U.S. algorithm will be retrained using data exclusively from American users. The content moderation policies will also shift to be set by the new investor-controlled entity. However, ByteDance will retain ownership of the underlying technology, causing some national security experts to raise concerns.
Jim Secreto, a former Treasury official working on TikTok policy, expressed skepticism about the structural changes. He noted that while the sale aims to address U.S. national security concerns, it may not fully sever ties with ByteDance as Congress intended.
Regulatory Background
This deal follows more than five years of increasing pressure from Washington. In 2024, Congress passed a law aimed at banning the app unless it was sold to an American entity. This law was upheld by the Supreme Court in early January 2025, adding urgency to the negotiations.
In terms of user demographics, TikTok boasts approximately 2 billion users globally. However, fewer than 10% of its user base resides in the United States, leading to a unique situation where one version of the app operates under American governance, while the global platform remains under ByteDance’s control.
Implications for Future Oversight
The structural changes are expected to introduce more stringent checks and balances concerning content and data security for U.S. users. However, experts caution that potential censorship issues may arise, as the American moderation team may restrict certain content relative to what is permissible on the global platform.
As this deal unfolds, the influence of the new American-led oversight on TikTok could set a precedent for data security and content moderation in the tech industry.
