TikTok signs US joint venture deal to end ban threat

TikTok's long-delayed plan to separate from Chinese parent ByteDance was put in motion on Dec 18 when the hugely popular social media app said it was being bought by a group of buyers led by US tech giant Oracle.

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TikTok chief executive Chew Shou Zi told employees that the company and ByteDance signed binding agreements to create a US joint venture majority-owned by American investors, according to an internal memo.

Mr Chew wrote that he was "pleased to share some great news" and said agreements with Oracle, US global private equity firm Silver Lake Management and Abu Dhabi-based investment company MGX have been signed.

The deal is expected to close on Jan 22, 2026, though Mr Chew added that "there's more work to be done" before then.

Mr Chew's memo did not mention China's opinion on the transaction, which would wrest some - but not total - control of TikTok US from ByteDance.

Upon closing, the US joint venture will operate as an independent entity that will control data protection, content moderation and algorithm security in the country, Mr Chew told employees in the memo.

The new US entity will also be "governed by a new seven-member majority-American board of directors", he added.

Oracle shares jumped nearly 6 per cent in after-hours trading on Dec 18 on the news.