Breaking Update: Here’s a clear explanation of the latest developments related to Breaking News:TikTok, parent ByteDance form JV to transfer parts of US business to investors Oracle, Silver Lake and MGX– What Just Happened and why it matters right now.
Video sharing platform TikTok and its parent ByteDance have formed a joint venture to transfer parts of TikTok’s United States business to non-Chinese owners, in order to comply with the Trump administration’s deal that allows it to continue in the US, Bloomberg reported.
TikTok will spin a newly created US entity with three managing investors: US software giant Oracle Corp., private equity firm Silver Lake Management LLC, and Abu Dhabi-based investment company MGX, it added.
Under the deal, ByteDance will lease a copy of its content algorithm to the US entity, which will allow it to retrain the new algorithm on US user data, it said.
TikTok begins process to comply with Trump deal
The deal, announced in September 2025, was initiated to address national security concerns and avoid a ban on the popular social media platform used by over 200 million Americans, the Bloomberg report noted.
The sale would culminate yearslong back-and-forth that has threatened to shut down TikTok in the US, it said. The move to ban the app in the US was passed by the Congress in 2024 — conditional to parent ByteDance selling the app to a US company.
Prior to this however, US President Donald Trump had unsuccessfully tried to ban the app in 2020, during his first term in the White House.
The reason cited was concerns that the Chinese government could abuse access to US user data or push narratives preferred by Beijing. Over the years, TikTok has stated that neither has happened, it added.
(With inputs from Agencies)