Tag: TikTok

TikTok has reached an agreement that allows it to continue operating in the United States, avoiding a potential nationwide ban. ByteDance, the Chinese parent company, will retain a minority stake in a newly formed US entity, while American and international investors hold the majority share.

The new company, TikTok USDS Joint Venture LLC, will oversee the platform’s U.S. operations for over 200 million users. About 80 percent of the venture is owned by U.S. and global investors, while ByteDance retains 19.9 percent. Key stakeholders include Oracle, Silver Lake, Abu Dhabi’s MGX, and Michael Dell’s investment firm.

Leadership changes include Adam Presser as CEO of the US operations, with Will Farrell as chief security officer. TikTok’s global CEO, Shou Chew, will join the board.

The deal introduces stricter data and security measures. US user data will be stored on domestic servers, and the recommendation algorithm will be retrained using US data, addressing long-standing concerns over Chinese access.

This arrangement satisfies US legal requirements set in 2024, which demanded TikTok divest from ByteDance or face a ban. Both US and Chinese regulators have approved the plan, bringing an end to years of uncertainty over TikTok’s future in America.

The agreement ensures the popular short-video app can continue serving its US audience while meeting security and privacy standards demanded by lawmakers.

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TikTok, the popular short-video platform owned by Chinese company ByteDance, has signed a binding agreement to transfer control of its USoperations to a new joint venture. The step is aimed at avoiding a potential US ban, which was being considered over national security concerns related to ByteDance’s Chinese ownership.

Under the deal, the new company known as TikTok USDS Joint Venture LLC , will be majority-owned by American and global investors, including technology giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX. ByteDance will retain a 19.9% stake, the maximum allowed for a Chinese company under US law. Other ByteDance-affiliated investors will hold about 30.1%.

The agreement gives the joint venture control over key areas such as U.S. user data security, content moderation, software auditing, and algorithm management. Oracle will act as a “trusted security partner”, ensuring that American user data is stored safely on U.S.-based servers and regularly audited for compliance with security standards.

TikTok’s CEO, Shou Zi Chew, said the joint venture will operate independently and safeguard U.S. users’ privacy while maintaining the platform’s popular features and content.

The deal is expected to close by January 22, 2026, giving TikTok a clear path to continue serving over 170 million American users without regulatory interruptions. The agreement also follows years of U.S. scrutiny over TikTok, including threats of a ban and demands to limit Chinese ownership.

While the restructuring satisfies US legal requirements, some lawmakers have questioned whether a minority stake by ByteDance and continued access to its recommendation algorithm fully eliminate potential security risks. Analysts believe the joint venture represents a compromise that balances regulatory compliance, investor interests, and continued service for users.

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