TikTok didn't just vanish. For a while, it looked like it would. You probably remember those frantic headlines in early 2025 when the app actually went dark for a few hours. It was chaos. Then, things got complicated.
The question of who purchased TikTok has been the ultimate tech soap opera of the last two years. It wasn't a simple "for sale" sign in the yard. Instead, it was a high-stakes tug-of-war between Washington, Beijing, and some of the richest people on the planet.
The Group That Actually Placed the Winning Bid
On December 18, 2025, the mystery finally ended. TikTok's parent company, ByteDance, signed a binding agreement to spin off its U.S. operations into a brand-new entity. This new company is called TikTok USDS Joint Venture LLC.
So, who are the new bosses? It’s a consortium.
- Oracle: Larry Ellison’s cloud giant is the heavy hitter here. They aren't just investors; they are the "trusted tech partner" responsible for hosting every byte of American data.
- Silver Lake: This is a massive private equity firm known for playing in the big leagues of tech.
- MGX: An investment firm based in Abu Dhabi. Their inclusion raised some eyebrows, but they brought the capital needed to make the $14 billion valuation work.
Larry Ellison, a long-time supporter of President Trump, was the driving force. Under this deal—which is officially set to close on January 22, 2026—these three firms collectively hold a 45% stake.
Wait, Does China Still Own Any of It?
This is where it gets kind of murky. ByteDance didn't just walk away with nothing.
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The law passed by Congress—the one Joe Biden signed and Donald Trump ultimately navigated—required ByteDance to get its ownership below 20%. In the final deal, ByteDance retains exactly 19.9%. It’s the legal equivalent of staying just under the speed limit so you don't get a ticket.
Another 30.1% is held by existing global investors who already had stakes in ByteDance, like Susquehanna and BlackRock. Because these are international firms but not directly "the Chinese government," the U.S. government decided this counts as a "qualified divestiture."
The Algorithm Problem: What You’re Actually Seeing
Honestly, everyone was worried about the algorithm. China basically said, "You can have the app, but you can't have the math that makes it addictive."
The workaround was bizarre.
Oracle is currently "retraining" the algorithm. Basically, they took the core code from China, put it in a digital room in Texas, and stripped out any Chinese influence. Now, the recommendation engine runs solely on U.S. user data. Oracle’s engineers are the ones looking under the hood to make sure there aren't any "backdoors" for propaganda.
Why $14 Billion Was a Total Steal
If you follow business news, that $14 billion number sounds fake. TikTok's global value has been estimated at over $300 billion. So why did the U.S. arm go so cheap?
Leverage.
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ByteDance was staring at a total ban. A 100% loss of the U.S. market is worse than a 90% discount on a sale. JD Vance even floated that $14 billion figure months before the deal was signed, and while investors were stunned, ByteDance eventually had to swallow the pill.
What Most People Get Wrong About the "Ban"
The "ban" wasn't a single event. It was a series of extensions.
- January 2025: The app goes dark briefly after the Supreme Court upholds the original law.
- The Trump Intervention: On his first day back in office, Trump signs an executive order to pause the ban while a deal is brokered.
- The Extensions: Four separate delays followed throughout 2025 as negotiations with Xi Jinping and ByteDance leadership stalled and restarted.
It wasn't until December 2025 that the paperwork was finally inked.
What This Means for Your Feed in 2026
You've probably noticed that your FYP feels... mostly the same. That was the goal. The new board of directors is majority-American (six out of seven seats), and they are obsessed with "safety and security."
But there’s a catch.
With Oracle and figures like the Murdochs (who are also reportedly involved as smaller investors) in the mix, critics are already worried about a different kind of bias. Instead of "Chinese propaganda," people are now looking for "American political tilt."
Actionable Insights for Users and Creators
If you're a creator or a business relying on the app, the "who purchased TikTok" saga is finally settled enough for you to breathe.
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- Diversify your platforms anyway: While the 2026 deal secures the app's legality, the ownership structure is still a "joint venture" which can be messy.
- Watch the E-commerce shift: TikTok Shop is becoming a massive part of the new U.S. entity’s revenue plan to justify that $14 billion price tag.
- Data Privacy: Your data is now legally required to stay on Oracle servers in the U.S. If you're a high-security professional, this is the first time the app has been "green-lit" by the DOJ.
The deal officially closes in late January 2026. After years of "will they, won't they," the TikTok we know is now officially an American-led project with a Chinese minority stake.