TikTok announced on Thursday that it has established a majority American-owned joint venture to operate its US business, enabling the app to sidestep a potential ban over its Chinese ownership. The TikTok USDS Joint Venture LLC will serve more than 200 million users and 7.5 million businesses, implementing strict safeguards for data protection and content moderation.
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The move responds to a 2024 US law, passed under President Joe Biden, which required Chinese-owned ByteDance to sell TikTok’s US operations or face a ban. ByteDance retains a 19.9% stake, keeping ownership below the 20% threshold stipulated by the law. Three investors—Silver Lake, Oracle, and Abu Dhabi-based AI fund MGX—each hold 15% stakes, while other investors include Dell Family Office, affiliates of Susquehanna International Group, and General Atlantic.
TikTok parent company ByteDance says it has finalized a deal to create a new, majority American‑owned joint venture aimed at protecting US user data, and avoiding a potential US ban on the app, which reaches over 200 million Americans https://t.co/f96YIxv1Wq pic.twitter.com/gv8axjGyS5
— Reuters Business (@ReutersBiz) January 23, 2026
Trump welcomed the deal, claiming credit for facilitating the arrangement and thanking Chinese President Xi Jinping for approving it. Oracle executive chairman Larry Ellison, a longtime Trump ally, is a key figure in the venture. TikTok executive Adam Presser will serve as CEO, with Will Farrell appointed chief security officer.
The joint venture will govern US trust and safety policies, while TikTok’s global entities will manage product integration, e-commerce, and advertising. US user data will be stored in Oracle’s secure cloud and audited by third-party cybersecurity experts to meet federal standards.
Industry analysts note the deal ensures business continuity for users and advertisers, though questions remain about long-term implications. TikTok’s US operations are expected to continue without requiring users to download a new app, while investors and brand partners await clarity on the venture’s valuation and operational dynamics.
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The joint venture aims to maintain TikTok’s global popularity while addressing US policymakers’ longstanding concerns over data privacy and Chinese influence through the app’s algorithm.