TikTok has signed a deal to form a new U.S. joint venture controlled by mostly American investors that include Oracle Corporation, Silver Lake and MGX, according to an internal memo sent by TikTok CEO Shou Chew and obtained by ABC News.

This finally starts the process of ending the years-long saga over TikTok. It comes after Congress passed a law last year that requires TikTok to be banned in the U.S. if its Chinese parent company, ByteDance, does not sell its U.S. entity to Americans.

In the memo, Chew said “there’s more work to be done” as they move towards the closing date of January 22, 2026. 

“We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” Chew added.

Oracle, Silver Lake and MGX will each own 15% of the new entity; 19.9% will be retained by ByteDance; 30.1% will be held by affiliates of existing ByteDance investors, according to the memo.

MGX is based in the United Arab Emirates. Oracle and Silver Lake declined to comment.

Oracle is co-founded by Larry Ellison, who is also its largest shareholder.

Privacy and free speech experts have expressed concern about the deal, pointing out that the Ellison family controls CBS through Paramount, has attempted to buy Warner Bros, and has close ties to President Trump.

Axios was the first to report on the deal signing.

“Pursuant to the Executive Order signed by U.S. President Donald J. Trump on September 25, 2025, the agreements specify that the U.S. joint venture will be majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and U.S. national security,” the memo reads.

“The U.S. joint venture will be responsible for U.S. data protection, algorithm security, content moderation, and software assurance,” the memo adds.

It adds that Oracle will be the “trusted security partner” responsible for auditing and validating compliance with the National Security Terms after the transaction is complete.

In September, the White House unveiled details of a “framework deal” between the U.S. and China to save TikTok’s U.S. operations. At the time, a senior White House official said a “copy” of the algorithm — which is the secret sauce that makes TikTok so addictive — will be brought into the U.S. Joint Venture and overseen by Oracle, to comply with the laws in the US and China.