TikTok US deal looks to end saga

A deal to restructure TikTok’s US business looks likely to head off a long-threatened ban by shifting operational control to American investors while leaving parent company ByteDance with a minority stake. The agreement was first reported by Axios.

ByteDance has signed binding agreements to place TikTok’s US operations into a newly formed, majority-American joint venture, with a target closing date of 22 January 2026. The move follows years of bipartisan pressure in Washington over data security, algorithmic influence and concerns about Chinese government access to U.S. user information.

According to Reuters, the new entity – TikTok USDS Joint Venture LLC – will be controlled by an investor consortium led by Oracle, Silver Lake and Abu Dhabi-based MGX. Reuters reports the consortium will hold 80.1% of the venture, with ByteDance retaining a 19.9% stake.

Axios values the transaction at about $14bn and describes it as the culmination of regulatory efforts dating back to 2020. AP reports the venture will have a majority-American board and that Oracle will manage storage of US user data.

Alongside this provision around user data, governance and oversight will be based in the United States, and new controls will apply to the algorithm that powers TikTok’s For You feed. ByteDance will retain ownership of the source code and license it to the US entity rather than transferring it outright, preserving intellectual property while placing operational authority with American overseers.

The transaction addresses high political and commercial stakes. PhoneArena reports TikTok had about 1.59bn monthly active users worldwide in early 2025, including roughly 135.8m in the United States, and generated around $23bn in global revenue the previous year, largely from advertising. U.S. users spend an average of 52 minutes a day on the app, helping explain the intensity of regulatory scrutiny.

Lawmakers and regulators will now assess whether the structure meets the requirements of the 2024 US law that mandated divestiture or a shutdown, and whether a 19.9% ByteDance stake is sufficient to avoid the business being deemed foreign-controlled. Governance rules, algorithm licensing arrangements and the independence of content moderation will be central to that assessment.

Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
10

Notes:
✅ The narrative is current, with the deal announced on December 18, 2025, and set to close on January 22, 2026. ([apnews.com](https://apnews.com/article/2fdb915cac5b6d06907a5a2de6764376?utm_source=openai))

Quotes check

Score:
10

Notes:
✅ No direct quotes are present in the provided text, indicating original content.

Source reliability

Score:
8

Notes:
⚠️ The report originates from PhoneArena, a technology news outlet. While it provides detailed information, its reputation is not as established as major news organisations. ([phonearena.com](https://www.phonearena.com/news/tiktok-u.s.-assets-heading-to-american-led-consortium_id176739?utm_source=openai))

Plausability check

Score:
9

Notes:
✅ The claims align with recent reports from reputable sources, including the Associated Press and Reuters, confirming the deal’s details. ([apnews.com](https://apnews.com/article/2fdb915cac5b6d06907a5a2de6764376?utm_source=openai))

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
✅ The narrative is fresh, with no recycled content identified. While sourced from PhoneArena, the information is corroborated by reputable news outlets, enhancing its credibility. The absence of direct quotes suggests originality.