Observed Signal · Jan 26, 2026 · M&A · Source: AdExchanger · Impact: 3/5 · Sentiment: Neutral
TikTok Divests US Business Amid Data Policy Overhaul
TikTok agreed to divest its US business via a joint venture led by Silver Lake, Oracle, and MGX. The company also updated its Terms of Service and Privacy Policy to collect new data types, including device geolocation and information users disclose about race, religion, health, sexual orientation, gender identity, and citizenship or immigration status, a clause reportedly added in July 2024 (EU policy does not mirror this language). In media industry news, Forbes unveiled ForbesPredict, a beta on-site engagement feature that rewards readers with tokens for predicting real-world outcomes, tied to ForbesOne, Forbes’ data platform launched in 2021. The article also notes leadership turnover at Business Insider, with CEO Barbara Peng and several executives departing amid missed 2025 revenue targets. Additionally, as part of the takeover, TikTok Shop will end independent shipping for US brands.
Significant US TikTok divestiture and related privacy policy updates; notable industry implications but not a policy update from a major platform (Google/Apple/Meta) or an earnings report.
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Key Takeaways & Evidence Grounding
- TikTok signed a deal to divest its US business, forming a joint venture managed by a consortium including Silver Lake, Oracle, and MGX.
- TikTok updated its Terms of Service and Privacy Policy to collect new data types, including device geolocation and disclosures about race, religion, health, sexual orientation, gender identity, and citizenship or immigration status.
- The updated privacy language was reportedly added in July 2024; the EU privacy policy does not include similar language.
- ForbesPredict is launching in beta to reward readers with tokens for predicting real-world outcomes, leveraging ForbesOne, Forbes’ data platform launched in 2021.
- TikTok Shop will end independent shipping for US brands as part of the corporate takeover.
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TikTok US Sale to Oracle–Silver Lake–MGX Restructures US Ops
TikTok will operate in the United States through a standalone entity, the TikTok USDS Joint Venture LLC, with the deal closed on January 22, 2026. The restructure shifts data storage, access, content moderation, and algorithm security to the US-based JV. ByteDance remains financially involved but with limited influence; Oracle, Silver Lake, and MGX together hold about 45% of US activities, while ByteDance holds roughly 20%. Oracle will host US user data and oversee compliance with national security standards, and the JV may license the US algorithm from ByteDance for training and operation. The governance includes a seven-person board, with Adam Presser as JV CEO and Shou Zi Chew remaining on the board as Director. US Terms of Service and Privacy Policy have been updated to reflect the JV as operator (dated 22 January 2026). For users and brands, continuity is expected, but a migration to a US-version of the app is possible; advertisers gain longer planning and higher compliance expectations.
TikTok Sells US Business to Oracle, Silver Lake, MGX
ByteDance will sell around 80% of its US business to a newly formed joint venture led by Oracle, Silver Lake and MGX. The deal is planned to close on January 22, 2026, but remains contingent on approval from Chinese authorities (Beijing). The joint venture will take governance and responsibility for US data privacy, algorithm security, content moderation and software quality, while TikTok Global will retain global product questions and commercial operations. ByteDance would keep approximately 20% of the US unit, with affiliated ByteDance investors holding about 30%; the underlying recommendation algorithm remains formally with ByteDance. The arrangement aims to avert a potential US ban on the platform, with Beijing’s green light as the final hurdle. TikTok CEO Shou Zi Chew informed staff via an internal memo about the transaction; observers note the deal shifts some control toward US investors and regulatory authorities.
TikTok Restructures U.S. Ownership to Avert Ban
TikTok has finalized a restructure of its U.S. operations into a new joint venture controlled by an investor group led by Oracle, averting a prospective nationwide ban tied to national security concerns. The ownership split gives Oracle, Silver Lake and Abu Dhabi’s MGX each about 15%; ByteDance will retain just under 20% as a minority owner, while affiliates of existing investors will hold just over 30%. The arrangement resolves issues stemming from a 2024 divest-or-ban law and was described by the U.S. administration as a "qualified divestiture." The deal preserves access for roughly 170 million American users but has prompted scrutiny about further concentration of media and tech power, due in part to Oracle founder Larry Ellison’s expanded influence.
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