Oracle-Backed TikTok JV Faces Lawsuit Over ByteDance 80% U.S. Asset Divestment
Two investors filed a lawsuit challenging the approval of the TikTok spinoff backed by Oracle Corp, alleging the joint venture structure violates a law requiring ByteDance to divest 80% of U.S. assets. The suit seeks renegotiation of the January 2026 deal, potentially delaying Oracle’s planned JV investment.
1. Investor Lawsuit Targets TikTok Spinoff Approval
Zhaocheng Anthony Tan and Garrett Reid filed a lawsuit challenging the approval of the TikTok spinoff as a separate American-owned entity, naming President Donald Trump and Attorney General Pam Bondi as defendants for alleged unlawful endorsement of the deal.
2. Alleged Violation of Divestment Law
The plaintiffs assert the January 2026 agreement breached a law requiring ByteDance to divest 80% of its U.S. assets by January 2025 or face a ban, arguing the joint venture structure leaves ByteDance with effective control over TikTok’s operations.
3. Implications for Oracle-Backed JV
Oracle Corp, which partnered with Silver Lake and MGX to back the new joint venture, faces potential delays or renegotiation of its investment and governance rights, increasing uncertainty around its planned stake and related financial commitments.