TikTok announced Thursday the creation of a majority American-owned joint venture to oversee its US operations, effectively avoiding a ban related to its Chinese ownership.
The new entity, TikTok USDS Joint Venture LLC, will serve over 200 million users and 7.5 million businesses in the United States while implementing strict safeguards for data protection, algorithm security, and content moderation.
The move comes in response to legislation passed under President Joe Biden's administration that required ByteDance, TikTok’s Chinese parent company, to sell its US operations or face a ban in its largest market.
ByteDance retains a 19.9 percent stake in the joint venture, keeping its ownership below the 20 percent legal threshold.
Three major investors, Silver Lake, Oracle, and Abu Dhabi-based AI investment fund MGX, each hold 15 percent stakes.
Oracle’s executive chairman Larry Ellison, a known ally of former President Donald Trump, is among the key figures involved.
The joint venture will maintain authority over trust and safety policies and content moderation for US users, while TikTok's global teams will continue managing international product integration and commercial activities like e-commerce and advertising.
Under the new arrangement, all US user data will be securely stored on Oracle's cloud infrastructure, with cybersecurity audited by third-party experts and conforming to federal standards.
TikTok has emphasized the stringent data protection measures in place to reassure users and regulators alike.
Governance of the joint venture will be overseen by a seven-member board, dominated by American executives, including TikTok CEO Shou Chew and leaders from the investment firms involved.
Adam Presser has been appointed CEO of the new US entity, with Will Farrell taking the role of chief security officer.
The legislation that triggered this restructuring was enacted amid growing US concerns about Chinese influence and data privacy.
Policymakers, including former President Donald Trump, argued that China could potentially use TikTok to collect Americans' data or manipulate the platform’s algorithm for political ends.
Despite these warnings, Trump, who credited TikTok with helping him connect with younger voters, repeatedly delayed enforcement of the ban through a series of executive orders. The most recent deadline was extended to January 22, 2026.
Trump responded enthusiastically to the announcement, posting on his platform Truth Social, “I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice.”
He also expressed gratitude toward Chinese President Xi Jinping for approving the deal, saying, “I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal.”
The joint venture’s investors also include Dell Family Office, affiliates of Susquehanna International Group, General Atlantic, and other investment firms, broadening the ownership base while maintaining majority American control.
This restructuring signals a significant shift in TikTok’s US operations, designed to address national security concerns and regulatory scrutiny while continuing to provide services to millions of Americans.
The company’s efforts aim to balance regulatory compliance with its commercial ambitions in a fiercely competitive digital landscape.
With the joint venture now in place, TikTok hopes to reassure lawmakers and users that US data will be safeguarded and that content moderation will meet American expectations, potentially setting a precedent for foreign-owned tech companies operating under heightened geopolitical scrutiny.
