TikTok U.S. divestiture 2026: Oracle and Silver Lake lead $14 billion takeover

A four-year geopolitical standoff has finally reached its climax. TikTok's U.S. entity officially signed a deal to divest a significant portion of its operations to a group of American investors for approximately $14 billion. This move marks a definitive shift in the platform's history, separating it from its Chinese parent company under intense national security scrutiny.

Oracle and Silver Lake lead the $14 billion TikTok U.S. divestiture

The investor group, which includes Oracle, private equity giant Silver Lake, and investment firm MGX, will collectively hold a 45% stake in the newly formed U.S. operation. ByteDance will retain a minority stake of nearly 20%. The valuation of the deal, first reported by Axios and echoed by Vice President JD Vance, places the U.S. business at a massive $14 billion.

Security Overhaul via TikTok USDS Joint Venture

Operations will transition to the TikTok USDS Joint Venture LLC, which is tasked with overseeing algorithm security, content moderation, and data protection. Oracle will act as the trusted security partner, auditing the platform to ensure compliance with national security terms. It's also expected that the U.S. owners will lease and retrain the algorithm from ByteDance to ensure zero Chinese influence over what American users see.