TikTok’s Chinese owner ByteDance has finalized a deal to establish a majority American-owned joint venture designed to secure U.S. user data and avert a nationwide ban of the popular short-video app. The new entity, TikTok USDS Joint Venture LLC, will be owned 80.1% by American and global investors, while ByteDance retains a 19.9% stake. The agreement follows years of political and legal disputes over national security concerns tied to TikTok’s Chinese ownership.
The deal has received approval from both U.S. and Chinese authorities, according to a White House official. Former President Donald Trump praised the agreement publicly, saying it met divestiture requirements set out in a 2024 law that had threatened a ban. TikTok said the venture will safeguard U.S. data, apps and algorithms through enhanced cybersecurity and privacy measures.
Oracle, Silver Lake and Abu Dhabi-based MGX will each hold 15% stakes as managing investors. Oracle’s U.S. cloud infrastructure will host and secure TikTok’s recommendation algorithm trained on U.S. user data. TikTok CEO Shou Chew will sit on the board, while former TikTok US executives Adam Presser and Will Farrell will lead the venture as CEO and chief security officer. The move represents a pivotal step for TikTok to continue operating for its more than 200 million American users.
