TikTok has reached a major turning point in its long-running battle to remain operational in the United States, signing a binding joint venture agreement that will allow it to avert a looming ban tied to concerns over its Chinese ownership.
According to an internal memo seen by international news agencies, TikTok’s Chief Executive Officer Shou Zi Chew confirmed on Thursday that the company, alongside its Chinese parent ByteDance Ltd., has agreed with a consortium of investors to form TikTok USDS Joint Venture LLC, a new U.S.-based entity that will take over the app’s American operations.
The deal, intended to satisfy stringent U.S. national security requirements, is a direct response to a 2024 U.S. law that mandated ByteDance divest TikTok’s U.S. business or face a shutdown in the country. For years, policymakers in Washington raised concerns that TikTok’s Chinese ties could pose security risks by exposing American user data or enabling foreign influence through its powerful recommendation algorithm.
Under the terms of the agreement, which is expected to close by January 22, 2026, a group of U.S. and global investors will control a majority stake in the new venture. Major participants include U.S. tech giant Oracle Corp., private equity firm Silver Lake, and Abu Dhabi-based MGX, each slated to hold roughly 15 percent of the joint venture. Affiliates of existing ByteDance investors will hold around 30.1 percent, while ByteDance itself will retain a 19.9 percent share—the maximum permitted under U.S. scrutiny of Chinese-owned firms.
In his memo, Chew emphasized the venture’s role in safeguarding U.S. interests. “The U.S. joint venture will be responsible for U.S. data protection, algorithm security, content moderation, and software assurance,” he wrote. “It will also have the exclusive right and authority to provide assurances that content, software, and data for American users is secure.”
To further address security concerns, Oracle will serve as a trusted security partner, overseeing the storage and management of U.S. user data in compliance with domestic regulations. The new entity will also operate under a majority-American board of directors, tasked with independently managing the platform’s operations in the United States.
TikTok’s U.S. operations are widely used by more than 170 million Americans, making the platform a central hub for digital content, community engagement, and commerce. The new agreement ensures uninterrupted access for users, creators, and advertisers who depend on the app.
Experts and analysts have described the deal as a significant step toward resolving regulatory uncertainty that has lingered since late 2020, when then-President Donald Trump first attempted to ban the platform over similar concerns. Earlier efforts to push through a sale or enforce a shutdown were repeatedly delayed through executive orders and negotiations.
While the joint venture deal represents a compromise that keeps TikTok’s American presence intact, it has also drawn scrutiny from critics who argue the structure may not fully eliminate foreign influence. Some lawmakers and commentators continue to call for stricter oversight or complete divestiture, questioning whether the new arrangement goes far enough to protect U.S. national security.
As the closing date approaches, both industry watchers and TikTok’s global community will be closely monitoring the implementation of the agreement and its implications for the future of one of the world’s most influential social media platforms.
