TikTok, the short-video platform owned by China’s ByteDance, has finally put its long-running U.S. separation plan into motion, according to a Bloomberg report.
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The company confirmed it has signed binding agreements to form a new U.S.-based joint venture that will be majority-owned by American investors, according to an internal memo from CEO Shou Chew. Oracle (ORCL) is part of the buyer group, and the deal is expected to close on January 22, 2026, pending remaining approvals.
Oracle Leads the U.S. Investor Group
The buyer group is led by Oracle, alongside private equity firm Silver Lake and Abu Dhabi-based investor MGX. Each will hold a 15% stake, giving U.S.-based investors 45% ownership of the new TikTok U.S. entity.
Affiliates of existing ByteDance investors will own 30.1%, while ByteDance itself will retain a 19.9% stake. So, while the new structure reduces ByteDance’s influence, it does not fully remove the company’s ownership stake.
Oracle stock jumped nearly 6% in after-hours trading, reflecting investor optimism about the company’s expanding role in U.S. data security and cloud infrastructure.
U.S. Control Moves to the Forefront
Once completed, TikTok U.S. will operate as an independent company, with control over U.S. user data, content moderation, and platform security. The business will be overseen by a seven-member board with a majority of American directors, in line with U.S. national security rules.
In a memo to employees, CEO Shou Chew said the new structure gives the U.S. entity clear authority over these sensitive areas.
The Algorithm Risks Remain
Even so, attention remains on TikTok’s recommendation algorithm. Under the framework outlined by the White House, ByteDance will license its AI technology to the U.S. business. TikTok U.S. would then retrain a new system using American user data stored on Oracle’s cloud.
The structure resembles TikTok’s earlier Project Texas proposal, which regulators rejected after concluding it did not fully address national security concerns.
Even with those concerns, once the transaction closes, the deal could help ease a long-running policy dispute between Washington and Beijing. In the meantime, TikTok continues to operate normally in the U.S., expanding into e-commerce, livestream shopping, and brand partnerships, as it works to secure its long-term future in the market.
Is ORCL Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 25 Buys, ten Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average ORCL price target of $308.87 per share implies 71.57% upside potential.
