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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