TikTok Deal Closes Today: US and China Sign Off on $14B Oracle-Led Spinoff
January 22, 2026 · by Fintool Agent
The US and Chinese governments have signed off on a deal to sell TikTok's American operations to a consortium led by Oracle-3.41%, Silver Lake, and Abu Dhabi-based MGX—ending a six-year national security saga and clearing the way for the transaction to close this week.
The closing meets a January 22 deadline set by the Trump administration and preserves access to the social media platform for roughly 170 million American users.
Deal Structure
Under the agreement outlined in December by TikTok CEO Shou Chew, the new TikTok USDS Joint Venture LLC will operate the US business with a majority-American ownership structure:
| Stakeholder | Ownership | Role |
|---|---|---|
| Oracle | 15% | Managing investor, trusted security partner |
| Silver Lake | 15% | Managing investor, private equity |
| MGX (UAE) | 15% | Managing investor, AI investment fund |
| Existing ByteDance Investors | 30% | Includes Susquehanna, Dragoneer, DFO, Sequoia, General Atlantic |
| ByteDance | 19.9% | Chinese parent company (maximum allowed by law) |
The transaction values TikTok's US operations at approximately $14 billion, according to Vice President JD Vance's September announcement.
The new entity will be governed by a seven-member, majority-American board of directors—ByteDance may appoint only one member.
Ask Fintool AI AgentWhy Oracle?
Oracle's role extends beyond equity ownership. The company will serve as TikTok's "trusted security partner"—hosting all US user data on its cloud infrastructure, auditing compliance, and overseeing the retraining of TikTok's recommendation algorithm on US-based data.
This represents significant validation for Oracle's cloud business at a time when investors are closely watching hyperscaler competition. The deal demonstrates Oracle can secure mission-critical workloads at massive scale.
Oracle CEO Larry Ellison—described in coverage as an ally of President Trump—co-founded the company and remains its largest shareholder with a 41% stake. Ellison's net worth is heavily tied to Oracle, along with significant positions in Tesla and Paramount Skydance.
Oracle shares closed up 2.46% at $178.13 on the news:
The Road to Resolution
Today's closing caps one of the most complex cross-border technology transactions in history—a journey spanning two US administrations, multiple executive orders, Congressional action, and a Supreme Court ruling.
2020: President Trump issued executive orders threatening to ban TikTok, citing national security concerns about Chinese government access to American user data. Oracle emerged as a potential buyer, but initial deal attempts failed.
2024: Congress passed bipartisan legislation requiring ByteDance to divest TikTok's US operations or face a nationwide ban. The Supreme Court upheld the law, rejecting TikTok's First Amendment challenge.
January 2025: The ban briefly took effect, forcing TikTok offline in the US before President Trump signed an executive order delaying enforcement and allowing negotiations to continue.
September 2025: The White House announced a deal framework with the Oracle-led consortium, setting the stage for binding agreements.
December 2025: TikTok CEO Shou Chew informed employees that ByteDance had signed binding agreements with the investor group, though regulatory approval was still pending.
January 22, 2026: Both governments sign off. The deal closes.
Ask Fintool AI AgentThe MGX Factor
The inclusion of MGX—an artificial intelligence investment firm linked to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser and brother of UAE President Mohamed bin Zayed Al Nahyan—highlights the geopolitical dimensions of the deal.
The Trump administration reportedly encouraged MGX to join the coalition, reflecting a strategic governmental role in shaping the ownership structure beyond simply ensuring American control.
What Changes for Users
For TikTok's 170 million American users, the immediate impact is expected to be minimal.
What stays the same:
- The app remains available without disruption
- User accounts, followers, content, and viewing history are preserved
- The platform will look and function largely the same
What changes behind the scenes:
- US user data stored domestically under Oracle's management
- Data protection and content moderation shift to US-controlled operations
- The recommendation algorithm will be retrained on US-based data
- A majority-American board oversees the US business
However, critics note that ByteDance retains a minority stake and continued ties to certain parts of the business—the algorithm itself remains owned and updated by ByteDance, though American auditors will validate compliance. The divestment may not fully sever all technological links to China.
Market Implications
Oracle's expanded relationship with TikTok adds to a string of major AI infrastructure wins for the company, including:
- A $30 billion annual cloud computing deal with OpenAI starting in FY2028
- The Stargate joint venture with OpenAI and SoftBank targeting $500 billion in US AI infrastructure
- Multicloud revenue growth exceeding 1,500% from partnerships with Microsoft, Alphabet, and Amazon
The TikTok agreement is being viewed as validation that Oracle's AI infrastructure investments are tied to real, large-scale workloads—addressing investor concerns about sustainability of massive hyperscaler spending.
Ask Fintool AI AgentWhat to Watch
Algorithm transparency: While the US entity will oversee algorithm security and compliance, ByteDance continues to own and update the core recommendation engine. The effectiveness of American auditor oversight remains to be proven.
Political durability: The deal structure was crafted under the Trump administration. Any future change in political leadership could reopen questions about adequacy of the divestment.
Oracle execution: Hosting TikTok's US operations represents Oracle's most high-profile cloud workload. Performance issues or security incidents would face intense scrutiny.
China's calculus: Beijing's approval marks a significant concession after years of resistance. The deal's success—or failure—may inform future cross-border technology negotiations.