The transaction is set to close on Jan. 22, Chew said in a memo to employees that was shared with PYMNTS.
“Pursuant to the Executive Order signed by U.S. President Donald J. Trump on September 25, 2025, the agreements specify that the U.S. joint venture will be majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and U.S. national security,” Chew said in the memo.
A consortium of new investors will hold 50% of the U.S. joint venture, with Oracle, Silver Lake and MGX having 15% each, according to the memo. Affiliates of certain existing investors of ByteDance will hold 30.1%, while ByteDance will retain 19.9%.
Reached by PYMNTS, Oracle declined to comment on reports of an agreement.
Neither MGX nor Silver Lake immediately replied to PYMNTS’ request for comment.
According to the TikTok memo, the U.S. joint venture will oversee data protection, algorithm security, content moderation and software assurance.
It will safeguard U.S. user data, which will be stored in the U.S. by Oracle; ensure the content feed is free from outside manipulation; review and approve all content moderation within the U.S.; and ensure the integrity of the U.S. application software and platform, the memo said.
TikTok Global’s U.S. entities will manage global product interoperability as well as eCommerce, advertising, marketing and certain other commercial activities, per the memo.
“Through comprehensive security measures, more than 170 million Americans will continue to discover, create and connect on the platform, enjoying the same experience as today,” Chew said in the memo. “Advertisers will continue to connect with global audiences with no impact.”
Former U.S. President Joe Biden signed a law in April 2024 that required TikTok to be banned unless ByteDance sold its stake in the company within a year of that date.
Biden signed the bill after it was passed by the House and Senate, with supporters arguing the threat of a ban was necessary for national security concerns.
Since that time, the law has faced a legal challenge and, upon the election of Trump, some delays as different potential buyers worked to put together a deal.
Trump’s executive order issued in September determined that a proposed framework agreement in which TikTok’s U.S. app would be operated by a new joint-venture company based in the U.S. is a “qualified divestiture” that would resolve national security concerns and comply with the law.
