December 23, 2025
Oracle-led Investor Group Saves TikTok from the US Ban
After years of political pressure, legal uncertainty and repeated deadline extensions, TikTok’s future in the United States has finally been stabilised.
A new investor-led group, fronted by Oracle, will take control of TikTok’s U.S. operations, allowing the platform to continue operating for its 170 million American users and avoiding a nationwide ban that had been hanging over the app since 2024.
The deal, which is expected to close on 22 January, creates a new joint venture that will run TikTok’s U.S. business. According to an internal memo from TikTok CEO Shou Zi Chew, ownership will be split between Oracle, private equity firm Silver Lake, Abu Dhabi-based investment group MGX, and affiliates of existing ByteDance investors. ByteDance itself will retain a 19.9% stake, keeping it below the threshold required under U.S. law to avoid foreign control.
The agreement brings to an end a long standoff between Washington and ByteDance, sparked by national security concerns over user data and the platform’s powerful recommendation algorithm. In April 2024, the U.S. Congress passed legislation requiring TikTok to divest its U.S. operations or face a ban. While the law was initially set to take effect in January 2025, President Donald Trump delayed enforcement several times while negotiations continued.
Oracle’s Role Goes Far Beyond Investment
Beyond taking an ownership stake, Oravle will be responsible for auditing and validating TikTok’s compliance with agreed national security terms, according to the internal memo.
Oracle’s U.S.-based cloud infrastructure will also host sensitive American user data, which will directly address long-standing concerns around data access and sovereignty.
Crucially, while ByteDance will continue to own TikTok’s underlying algorithm, Oracle is expected to license it for U.S. operations. The U.S. version of the algorithm will be retrained using only American user data, and content moderation policies will be set by the new, investor-controlled entity rather than by ByteDance in Beijing.
This governance move could reduce fears of foreign influence over content and data, though some experts note it may introduce new questions around speech moderation and platform transparency in the U.S. market.
Following the announcement, Oracle shares jumped around 7%, which could point to optimism that the deal represents a strategic win for the company’s cloud business at a time when it has faced scrutiny over heavy AI infrastructure spending. Analysts described the move as a “nice win” that could generate long-term upside, particularly if TikTok’s scale drives additional demand for Oracle’s cloud services.
