ByteDance has finalized binding agreements to establish a U.S.-based joint venture that will place control of TikTok’s American operations largely in the hands of U.S. and global investors, a critical move aimed at averting a potential ban and resolving years of regulatory uncertainty.
The new entity, TikTok USDS Joint Venture LLC, will see American and global stakeholders, including cloud computing firm Oracle, private equity group Silver Lake, and Abu Dhabi-based MGX, hold an 80.1% stake. ByteDance will retain a 19.9% minority position. The company’s U.S. operations are expected to be valued at roughly $14 billion, according to Vice President JD Vance.
The agreement comes after years of scrutiny beginning in August 2020, when former President Donald Trump first sought to ban the app over national security concerns. In September 2025, Trump delayed enforcement of legislation requiring ByteDance to divest TikTok’s U.S. assets until January 20, while confirming the pending joint venture met statutory divestiture requirements.
TikTok CEO Shou Zi Chew told employees that the new venture will “operate as an independent entity with authority over U.S. data protection, algorithm security, content moderation and software assurance,” according to an internal memo obtained by Reuters. Meanwhile, TikTok Global’s U.S. divisions will continue handling certain commercial functions, such as e-commerce, advertising, and marketing, separately from the joint venture.
Oracle will act as the venture’s “trusted security partner,” tasked with auditing and ensuring compliance with U.S. data protection requirements. User data will be stored securely within U.S. cloud infrastructure managed by Oracle. ByteDance will appoint one of seven board members, with Americans holding the remaining majority seats.
Despite these structural safeguards, analysts and observers continue to question ByteDance’s ongoing influence, particularly regarding algorithm control. Rush Doshi, formerly at the National Security Council, noted it is unclear whether the platform’s algorithm has been fully transferred, licensed, or remains under Beijing’s control. Chinese media reports suggest ByteDance may retain a revenue stream from the U.S. venture.
The deal, scheduled to close on January 22, is expected to conclude a multiyear effort to compel ByteDance to divest its U.S. business amid national security concerns. Lawmakers have also signaled continued oversight, with Representative John Moolenaar indicating a potential congressional hearing with the new leadership in 2026.
The joint venture has drawn political scrutiny. Senator Elizabeth Warren criticized the arrangement, warning Americans remain in the dark about potential influence by billionaire investors connected to former President Trump. Trump has publicly promoted TikTok, crediting it with helping his reelection campaign, and maintains relationships with key figures involved in the transaction, including Oracle CEO Larry Ellison.
The final composition of investors in the joint venture included high-profile individuals reportedly vetted by Trump, though details regarding participation by figures such as Michael Dell and Rupert Murdoch remain unclear.
The transaction represents a landmark moment for TikTok, which has over 170 million regular U.S. users, as it navigates geopolitical scrutiny and regulatory demands while maintaining operations in one of its largest markets.
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