TikTok Confirms Transition From ByteDance to US-Based Joint Venture

Social media app TikTok has officially completed its transition from Chinese-company ByteDance to a US-based joint venture, allowing it to stay legal in the country.

Back in 2024, the Biden administration suspected ByteDance, TikTok's parent company, of spying on American citizens and the US government using the application. Because of this, a ban on TikTok was imposed in January 2025, but the deadline for ByteDance to agree to a deal with American investors was later extended by US President Donald Trump.

After weeks of negotiations, the United States and China reached a framework deal in September, but that framework has now been officially implemented. Now, TikTok is primarily owned by four companies, with the rest of the ownership going to other corporations and shareholders.

Oracle, owned by tech billionaire Larry Ellison, is one of the two American firms involved, with a 15% stake in the deal. Ellison is also very close with Trump, and his son, David Ellison, has been making waves with the recent Paramount Skydance merger and their unsuccessful attempt to purchase Warner Bros. Discovery. Under the deal, Oracle will oversee the security of Americans' data on TikTok, and all TikTok data will continue to be stored on Oracle servers to fully convince the US government that their data is not being sent to China.

Silver Lake, a major technology investment firm, will also hold a 15% stake in TikTok. They have experience with the field and have also worked with Oracle on past projects, making them a solid second owner.

Meanwhile, the third non-Chinese owner of TikTok will be MGX, an Emirati investment company focused specifically on new technology and artificial intelligence. MGX will also maintain a 15% stake in TikTok alongside Oracle and Silver Lake. Additionally, G42, a co-partner in the founding of MGX, has been the recipient of Silver Lake investments for over five years, giving the group a strong connection between partners.

Finally, the fourth major owner will be ByteDance themselves, who will maintain a 19.9% stake in TikTok, which was their original application to begin with. Today, the social media platform has 1.9 to 2 billion monthly active users across the globe, but that's not all. ByteDance also owns a host of other apps, including Douyin, the original Chinese version of TikTok; Toutiao, a major personalized news platform; CapCut, a world-leading short video editor; and Lemon8, a lifestyle-focused social media platform.

The rest of the shares will be distributed among shareholders and other corporations interested in getting involved, fully completing TikTok's transition from full ByteDance ownership to primarily a joint venture between Oracle, Silver Lake, and MGX.

Leadership structure at the company will also change– Adam Presser, the company's previous head of operations, will be promoted to CEO, while Shou Zi Chew, TikTok's CEO, will become a director. In addition to him, there will be six other directors; one from each of the partners in the joint venture and three others from additional companies investing in TikTok.

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