China‑based tech giant ByteDance Ltd., the parent company of TikTok, has taken a major step to keep the wildly popular short‑video app operating in the United States by signing binding agreements to form a new joint venture with U.S. and global investors, ending years of uncertainty over a possible ban.
Under the deal, ByteDance will transfer control of TikTok’s U.S. operations to a newly formed company — TikTok USDS Joint Venture LLC — in which American and international partners will hold the majority stake.
The new venture is structured to comply with a 2024 U.S. law requiring apps owned by “foreign adversaries” to divest or face removal from the U.S. market.
Key investors in the joint venture include Oracle, private equity firm Silver Lake, and Abu Dhabi‑based MGX, each taking significant ownership alongside other ByteDance investor affiliates. ByteDance will retain a 19.9 % minority stake, the maximum allowed for a Chinese company under U.S. regulations, while the consortium of new and existing investors will control the rest.
The U.S. joint venture will oversee critical national security functions such as U.S. user data protection, algorithm security, content moderation, and software assurance, with Oracle designated as a trusted security partner.
TikTok’s global entities will continue managing revenue‑generating areas like advertising and e‑commerce separately from the new entity.
The agreement is seen as a milestone resolution to a saga that began in 2020 with bipartisan concerns about foreign access to American user data, and negotiations intensified after the 2024 law pushed for divestiture or a ban.
The deal is expected to be completed by January 22, 2026, preserving access for TikTok’s over 170 million U.S. users and providing clarity for advertisers and content creators.
While the deal addresses national security requirements, some analysts note ongoing questions about how TikTok’s recommendation algorithm will be controlled and whether ByteDance will retain influence over aspects of the platform’s technology and operations.
The joint venture structure represents a significant shift in how foreign‑owned tech platforms can continue operating in the world’s largest digital market amid geopolitical and regulatory pressures, setting a potential precedent for future cross‑border tech business arrangements.
