Observed Signal · Jan 26, 2026 · Divestiture · Source: AdExchanger · Impact: 5/5 · Sentiment: Negative
TikTok US Divestiture Sparks Privacy Concerns
TikTok signed a deal to divest its U.S. business into a joint-venture overseen by Silver Lake, Oracle and Emirati investor MGX, and simultaneously updated its Terms of Service and Privacy Policy to say it will collect new data types including device geolocation and user-disclosed sensitive attributes (race, religion, health, sexual orientation, gender identity, citizenship/immigration status). The policy change — present in language likely added in July 2024 — has drawn user alarm and political scrutiny, especially given the inclusion of a Dubai-based investor. Separately, Forbes is launching a beta product called ForbesPredict that gamifies reader predictions with non-cash “tokens” to drive engagement and first-party data for its ForbesOne platform. Business Insider reported multiple senior departures after missing revised 2025 revenue targets. The report also notes operational changes to TikTok Shop (ending independent shipping for U.S. brands) and other publisher and industry items.
Major social platform restructuring plus a material privacy/policy change affects data collection practices, ad inventory access and regulatory scrutiny—impacting publishers, advertisers and privacy frameworks across the industry.
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Key Takeaways & Evidence Grounding
- TikTok signed a deal to divest its U.S. business into a joint venture managed by Silver Lake, Oracle and MGX.
- TikTok updated its Terms of Service and Privacy Policy to collect new data types including device geolocation and user-disclosed sensitive attributes (race, religion, health, sexual orientation, gender identity, citizenship/immigration status).
- Forbes plans to launch ForbesPredict (beta) — a gamified prediction feature that pays out in tokens and aims to increase on-site engagement and first-party data for ForbesOne.
- Business Insider experienced a string of executive departures (including CRO Maggie Milnamow and global head of sales Orlando Reece) after missing revised 2025 revenue targets.
- As part of the new corporate changes, TikTok Shop will end independent shipping for U.S. brands.
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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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