TikTok has informed employees that it has signed an agreement with investors to create a new joint venture for its U.S. operations, according to an internal memo. The deal will allow TikTok to operate as an independent entity in the United States, while remaining connected to its global business, including advertising and e-commerce.
The investor group includes Oracle, private-equity firm Silver Lake, and Abu Dhabi–based investment firm MGX. TikTok expects the transaction to close in January. The move follows a U.S. law passed last year requiring ByteDance to divest TikTok’s American business or face a ban over national security concerns.
Under the new structure, the U.S. venture will independently manage areas such as data protection and its recommendation algorithm. The agreement follows months of legal challenges, a Supreme Court ruling upholding the divest-or-ban law, and repeated deadline extensions by the White House. The Trump administration previously approved the sale, valuing TikTok’s U.S. operations at around $14 billion.