Oracle and Silver Lake Secure TikTok’s US Operations in New Joint Venture – DTH

A newly formed joint venture led by Oracle and Silver Lake has officially acquired the U.S. assets of social media giant TikTok, effectively transferring control of its American operations to a majority U.S.-owned entity as of January 23, 2026. This strategic acquisition aims to satisfy national security requirements regarding user data privacy and algorithm sovereignty while allowing parent company ByteDance to retain specific global commercial interests. The deal headlines a volatile week in the technology sector, accompanied by significant antitrust scrutiny for Google, a massive acquisition bid by Netflix, and widespread workforce reductions at Amazon.

Key Points

• TikTok Ownership Change: Oracle and Silver Lake now hold 50% of the entity controlling TikTok's U.S. operations, with Oracle overseeing algorithm retraining and data security.
• Antitrust Scrutiny: A federal judge is questioning the settlement between Epic Games and Google due to an undisclosed $800 million business partnership.
• Media M&A: Netflix has submitted an $82.7 billion all-cash offer for Warner Bros Discovery Studios, dismissing a rival bid from Paramount.
• Corporate Restructuring: Amazon plans to cut thousands of additional corporate jobs to reach a 30,000-role reduction target, while Intel shifts manufacturing focus to AI server chips.

TikTok’s New U.S. Operating Structure

The acquisition establishes a distinct separation between TikTok’s U.S. functions and its Chinese parent company, ByteDance. The new entity, led by CEO Adam Presser and CSO Will Ferrell, has implemented rigorous safeguards for U.S. user data and content moderation. While the user experience will remain visibly unchanged, the platform's core recommendation algorithm is being retrained on U.S. data under the direct supervision of Oracle.

Despite the operational split, ByteDance retains control over global e-commerce and advertising mechanisms. This structure is designed to mitigate national security concerns that have plagued the platform for years, although questions regarding the complete resolution of these issues persist.

Regulatory Challenges and Market Consolidation

Beyond the TikTok deal, the technology sector is facing intense legal and financial turbulence. A federal judge is currently scrutinizing the antitrust settlement between Epic Games and Google. The inquiry centers on a previously undisclosed partnership involving Unreal Engine and Fortnite, which commits Epic to spending $800 million on Google services over six years.

Judge James Donato has raised concerns that this side deal creates a conflict of interest.

"The business deal appears to be tied to finalizing the settlement," noted Judge Donato, questioning if the partnership influenced Epic to weaken its demands for broader Android ecosystem changes.

Simultaneously, the media landscape is poised for a major shift. Netflix co-CEO Greg Peters expressed confidence in the company's $82.7 billion all-cash bid for Warner Bros Discovery Studios. Peters characterized a competing hostile bid from Paramount—extended recently after an initial rejection—as "lacking credibility and shareholder support," suggesting the rival offer is untenable without the backing of Larry Ellison.

Operational Shifts: Hardware Constraints and Layoffs

Hardware and infrastructure providers are aggressively pivoting to meet the demands of the AI boom. Intel is reallocating its foundry capacity from client chips to high-margin Xeon AI server processors. This strategic shift stems from a misjudgment of surging data center demand, resulting in a capacity crunch that may make low-end Intel PCs scarcer. The decision comes as Intel reports a Q4 net loss of $591 million, with its foundry division operating at a $2.5 billion loss.

Amazon is also restructuring, planning a second, larger round of layoffs next week to complete a target of eliminating 30,000 corporate positions. These cuts will impact Amazon Web Services (AWS), retail, Prime Video, and HR departments.

CEO Andy Jassy attributed the reductions to "reducing bureaucracy," though he had previously linked long-term corporate workforce shrinkage to AI efficiency.

Automotive and Health Tech Developments

Tesla continues to adjust its autonomous driving strategy amidst regulatory pressure. The company has removed basic Autopilot features (lane keeping and auto steer) as standard on North American Model 3 and Model Y vehicles, requiring customers to purchase a $99 monthly subscription for the "Full Self-Driving" system. However, in a significant step forward, Tesla has launched completely driverless robo-taxi rides in Austin, Texas, operating without human safety monitors.

In health technology, a clinical trial published in the Journal of American College of Cardiology confirmed that the Apple Watch significantly enhances the detection of dangerous heart rhythms. The device diagnosed atrial fibrillation four times more often than standard care, particularly in high-risk patients over 65, potentially offering a route to reduced stroke risks and healthcare savings.

As these structural changes take root, the industry awaits the final judicial ruling on the Google-Epic settlement and the potential regulatory approval of the Netflix-Warner Bros Discovery merger, both of which could fundamentally alter the competitive landscape of the tech and media sectors.