US and China Finalize TikTok Spinoff Deal to Avert Nationwide Ban
Washington D.C., Thursday, 22 January 2026.
Washington and Beijing have approved TikTok’s spinoff to an Oracle-led consortium, averting a ban. The historic deal reportedly values the unit at $14 billion, leaving ByteDance with a minority stake.
A Definitive Resolution to the TikTok Saga
After a protracted geopolitical standoff that threatened to sever 170 million Americans from their preferred digital square, the United States and China have officially sanctioned the spinoff of TikTok’s U.S. operations. Confirmed by White House officials on January 21, 2026, this agreement paves the way for the transaction to close by the government-mandated deadline of January 22, 2026 [1][2][8]. The deal effectively neutralizes the Protecting Americans from Foreign Adversary Controlled Applications Act, a legislative measure signed by President Joe Biden in 2024 and delayed by President Donald Trump’s executive order in September 2025, which had placed the platform on a regulatory precipice [1][5]. While the app briefly went offline in January 2025 due to missed deadlines, this new accord ensures service continuity while addressing Washington’s national security anxieties regarding data privacy and foreign influence [2].
Restructuring Ownership and Governance
The divestiture fundamentally alters the corporate architecture of the social media giant, transferring majority control from its Beijing-based parent company, ByteDance, to a consortium of American and allied investors. Under the finalized terms, ByteDance will retain a minority stake of just under 20% in the new U.S. entity [1][5]. The lead investors—Oracle, Silver Lake, and the UAE-based artificial intelligence investment firm MGX—will each acquire a 15% equity stake, collectively accounting for 45% of the new company [1][5]. The remaining shares are distributed among other institutional investors, including Susquehanna, Dragoneer, and the Dell family office (DFO) [5][7]. Crucially, the governance structure mandates a board of directors comprised primarily of U.S. citizens, with Oracle assuming responsibility for domestic data management to safeguard user information [1][2].
Market Valuation and Industry Impact
While the final sale price remains undisclosed in the immediate aftermath of the signing, the valuation implications are significant. In September 2025, Vice President JD Vance estimated the value of the U.S. business unit at approximately $14 billion [1][5]. The resolution of this uncertainty has triggered immediate movement in the equity markets. Oracle (ORCL), a central player in the new configuration, saw its shares trade up 3.09% to $179.25 following the news [5]. Interestingly, the clarity provided by the deal also buoyed competitors in the social media landscape; Snap shares rose 5%, and Pinterest gained 1.5%, as investors recalibrated their expectations for the sector’s competitive dynamics [7].