TikTok has finalized a joint venture with a group of major American and global investors, a move designed to secure its future operations in the United States and ease long-standing concerns about its Chinese ownership. According to an internal memo cited by US media outlets, TikTok CEO Shou Chew informed employees that both the company and its parent firm, ByteDance, have agreed to the structure of the new entity.
Under the arrangement, Oracle, Silver Lake, and Abu Dhabi–based MGX will come on board as key investors. One-third of the US venture will be held by existing ByteDance investors, while nearly 20 percent will remain with ByteDance — the maximum Chinese ownership permitted under the current US law. The restructuring follows a law that compelled ByteDance to divest significant control of TikTok’s US operations or face a potential ban in one of its largest markets.
The new entity will be responsible for US data protection, algorithm security, content moderation, and software oversight. Meanwhile, TikTok’s US-based global units will handle product interoperability and commercial functions such as e-commerce, advertising, and marketing.
The agreement also highlights the influential role of Oracle founder Larry Ellison, whose close ties with US leadership and expanding footprint in the tech landscape have positioned him as a central figure in the deal.
