TikTok’s U.S. sale set to close in January 2026 to avoid ban

After years of regulatory uncertainty and political pressure, TikTok’s sale of its U.S. operations to a consortium of primarily American investors is now moving toward a 22 January 2026 closing date. The deal follows U.S. legislation, the Protecting Americans From Foreign Adversary Controlled Applications Act, that required ByteDance, TikTok’s Chinese parent company, to divest its U.S. business or face a nationwide ban.

New TikTok U.S. Entity to Be Majority-American Operated

Under the agreed terms, TikTok’s U.S. operations will be reorganised as TikTok USDS Joint Venture LLC, owned jointly by a group that includes Oracle Corporation, Silver Lake, and UAE-based investment firm MGX. Each of these companies is expected to hold equal ownership stakes within the new group, while ByteDance will retain a minority interest in the U.S. business alongside existing investors’ affiliates.

The arrangement satisfies national security requirements by ensuring a majority-American board of directors and independent governance for U.S. user data protection, content moderation, and algorithm oversight.

How the Deal Affects TikTok’s Operations and Users

The sale permits TikTok to remain accessible to its more than 170 million American users, ensuring continuity for creators, advertisers, and the broader community in the U.S. market. The new ownership structure is expected to handle sensitive operational responsibilities, including data localisation and retraining the recommendation algorithm on U.S. user data, to prevent external manipulation and address longstanding regulatory concerns.

Oracle will act as the trusted security partner, helping audit compliance with national security terms agreed with the U.S. government. For marketers and creators who depend on TikTok’s reach, the resolution avoids a potentially disruptive shutdown of the platform in the U.S. and maintains the app’s role as a major social engagement and advertising channel.

A Landmark Conclusion to a Long-Running Saga

The announced closing date of 22 January 2026 marks a significant milestone in a years-long regulatory battle that saw bans threatened, divest-or-ban laws passed, and legal challenges mounted by ByteDance. With that said, we certainly hope there won't be any more delays because this is not the first time that it has been delayed. Stay tuned for more trending tech news at TechNave.com.