Reshaping a Giant: TikTok’s U.S. Business Goes to American Investors in a Landmark Deal

We explain why this deal matters for private equity firms, venture capital sponsors, family offices, pension funds, and strategic investors. The transaction addresses data sovereignty, national security, and foreign ownership while preserving access to a market of more than 170 million U.S. users.

A Consortium Takes the Helm

The agreement creates a new operating entity, TikTok USDS Joint Venture LLC, which will govern TikTok’s U.S. operations.

American and allied investors will hold a majority stake. Oracle Corporation, Silver Lake, and Abu Dhabi-based MGX are cornerstone investors. Depending on final allocation, the consortium will control between 50 percent and just over 80 percent of the venture. ByteDance will retain approximately 19.9 percent.

Oracle acts as both investor and trusted security partner. U.S. user data will be hosted on Oracle’s domestic cloud infrastructure. Oracle also oversees compliance, audits, and security controls.

Silver Lake contributes operational expertise from prior investments in large-scale technology platforms. MGX adds exposure to artificial intelligence, data optimization, and advanced recommendation systems.

Terms, Timeline, and Valuation

Binding agreements were signed in December 2025. Closing is scheduled for January 22, 2026, subject to regulatory and operational clearance.

The U.S. business will be governed by a majority-American board of directors. Strategic and operational control will reside in the United States.

No official valuation has been published. U.S. officials previously cited a figure close to USD 14 billion for the U.S. business alone. Industry analysts point to higher implied values when factoring advertising growth, creator monetization, and social commerce.

Mandated Overhaul of Data, Algorithms, and Governance

The transaction includes structural reforms that directly address U.S. regulatory concerns.

• All U.S. user data is stored domestically.
• Recommendation algorithms are retrained using only U.S. user data.
• Content moderation and software security are subject to independent oversight.
• Ongoing audits are conducted under a formal compliance framework.

Damalion highlights that these measures go beyond compliance. They reduce geopolitical risk and improve advertiser confidence in regulated sectors.

Why the Deal Matters for Investors

The transaction removes a regulatory overhang that affected revenue visibility and exit planning.

For digital advertising, TikTok remains one of the fastest-growing platforms. U.S. advertising revenue exceeded USD 16 billion in 2024, with annual growth above 20 percent.

Industries most exposed include consumer goods, retail, beauty, gaming, fintech, healthcare marketing, and e-commerce. U.S., German, French, and Japanese brands account for a large share of spend.

Private equity sponsors gain a clearer path to secondary transactions. Venture capital investors benefit from renewed confidence in creator monetization. Family offices and pension funds reduce volatility tied to regulatory risk.

Strategic Capital Allocation and Country Examples

Oracle’s role reflects a broader trend toward data localization. Similar models exist in cloud-regulated sectors in Germany, France, and Singapore.

Silver Lake’s involvement aligns with its investments in software platforms serving hundreds of millions of users globally.

MGX reflects sovereign capital interest in U.S. technology assets linked to artificial intelligence. Comparable structures are used in U.S.–UAE and U.S.–Saudi technology partnerships.

Execution Risks and Open Issues

Algorithm ownership remains a sensitive topic. Licensing versus full separation will continue to attract scrutiny.

Future political shifts may trigger renewed oversight. Operational execution and revenue growth will determine investor returns.

A New Phase for TikTok in the United States

This transaction is a reference case for cross-border technology restructuring.

Damalion explains that structured ownership, localized governance, and compliance-first design are now standard tools for investors navigating regulated technology assets.

This communication is only for informative purposes. Damalion supports entrepreneurs, investors, and family offices with compliant structuring, banking coordination, and legal/tax alignment for cross-border projects.