TikTok Avoids U.S. Ban Through Oracle-Led Joint Venture
TikTok’s U.S. operations will transition to a new entity—TikTok USDS Joint Venture LLC—with Oracle, Silver Lake, and Abu Dhabi’s MGX as managing investors. The deal, valued at $14 billion, allocates 80.1% ownership to American and global investors while ByteDance retains 19.9%. Oracle assumes a critical role as security partner, hosting U.S. user data in its cloud infrastructure.
The agreement, set to close January 22, 2025, resolves national security concerns that threatened a ban. ByteDance will maintain control over e-commerce and advertising operations through separate entities. Market observers note the deal’s structure mirrors corporate divestitures in regulated industries, with Oracle’s involvement signaling heightened data governance.
