The Zoom call was scheduled for 3 PM, but everyone knew the real meeting started weeks ago, behind closed doors, with lawyers and whispers of national security. Now, the announcement: a new entity, a joint venture, a glimmer of hope that TikTok might survive the chopping block. But is this just another mirage in the desert of dealmaking?
Déjà Vu All Over Again?
I remember the headlines from late 2025—”TikTok Deal Imminent!”—splashed across every tech blog. Yet, here we are again, with reports from the New York Times and Bloomberg suggesting ByteDance is creating an entity to sell a majority stake in TikTok’s U.S. operations. The company is very keen to say that this isn’t the final deal everyone has been waiting for.
This new entity, TikTok USDS Joint Venture LLC, involves major players like Oracle, UAE investment firm MGX, and Silver Lake, which, according to the NYT, will hold more than 80% ownership. Even Michael Dell is reportedly in the mix. But before you get too excited, remember the boy who cried wolf.
What does the TikTok USDS Joint Venture LLC actually do?
According to a press release from TikTok, this joint venture will “retrain, test, and update the content recommendation algorithm on U.S. user data” within Oracle’s U.S. cloud environment. On the surface, it seems innocuous. Yet, it has the faint whiff of political influence. Is there a risk that the U.S. government might try to subtly influence the algorithm to promote certain viewpoints?
The Deadline That Wouldn’t Die
I lost count of how many deadlines loomed over TikTok’s head, each one seemingly more arbitrary than the last. It all started with a bipartisan law in 2024, signed by President Biden, mandating a sale to U.S. interests to avoid a ban, citing national security concerns.
The original deadline of January 19, 2025, was extended by President Trump (remember him?) until April, then June, then September, and finally, January 22nd. Trump seemed to act like TikTok’s landlord, extending leases on a whim.
His motives? Inconsistent, to say the least. One minute, he was trying to ban the app; the next, he was praising its popularity among young voters, recognizing its potential to sway public opinion. The whole saga became a political circus.
Why was TikTok almost banned in the USA?
The primary concern revolved around data security. The worry was that the Chinese government could potentially access user data collected by TikTok or influence the content users see, thus posing a threat to national security. This concern fueled the bipartisan push for a sale to U.S. entities.
Another False Start?
It’s hard to shake the feeling that this whole situation is just another elaborate dance. We’ve been down this road before, hearing about “done deals” and “frameworks” that ultimately amounted to nothing. In October 2025, the same buzz circulated. A month prior, a “framework” for a deal was announced to fanfare. So, is this different, or is it just another layer of paint on a crumbling facade?
When Gizmodo reached out to TikTok for clarification, a spokesperson was quick to correct the narrative: “‘Deal to sell’ isn’t accurate framing,” they insisted, pointing to the language in the press release. The path to resolution has been long and filled with challenges; TikTok must be weary.
Who are the key players involved in the TikTok deal?
Beyond ByteDance, Oracle, MGX, and Silver Lake, it’s worth keeping an eye on figures like Michael Dell and the regulatory bodies overseeing international trade. Ultimately, the deal’s fate rests on their willingness to sign off on any agreement.
So, as the dust settles on this latest announcement, one question lingers: Is this the beginning of the end for TikTok’s uncertain future, or just another act in a never-ending drama that’s more exhausting than an influencer’s apology video?