Vnet is said to have secured order with TikTok owner ByteDance

Vnet is said to have secured order with TikTok owner ByteDance

ByteDance Finalizes U.S. TikTok Divestiture in Landmark Deal

TikTok’s Chinese parent company, ByteDance, has signed binding agreements to sell a majority stake in the app’s U.S. operations to a consortium of non-Chinese investors, resolving a six-year legal and regulatory standoff. The deal, announced on January 18, 2026, establishes a new joint venture—TikTok USDS Joint Venture LLC with Oracle, Silver Lake, and MGX collectively owning 45% of the entity. Additional investors, including Michael Dell's personal investment vehicle, will hold an additional 35%, resulting in non-Chinese ownership exceeding 80% of the U.S. operations. ByteDance will retain a 19.9% stake, while existing investors hold 30.1%.

The agreement, set to close on January 22, 2026, addresses longstanding U.S. national security concerns about potential data access by the Chinese government. It follows a bipartisan 2020 law requiring ByteDance to divest TikTok’s U.S. assets and a 2024 executive order by President Trump extending the deadline for compliance. The new structure aims to insulate U.S. user data and operations from Beijing's influence while preserving TikTok's role in the American digital landscape, which includes over 170 million active users.

The deal marks the end of a protracted legal battle involving multiple U.S. administrations, congressional bans, and a 14-hour nationwide app blackout in 2025. While Oracle, Silver Lake, and MGX have not publicly commented, TikTok emphasized that the venture will "enable Americans to continue discovering a world of endless possibilities". The transaction underscores the U.S. government's prioritization of tech sector security amid intensifying competition with China.

This development represents a pivotal shift in cross-border tech investment dynamics, balancing regulatory scrutiny with the economic significance of global platforms. Investors will closely monitor the joint venture's operational independence and long-term profitability.

NBC News: NBC News
New York Post: New York Post
The New York Times: The New York Times