TikTok’s Chinese parent company, ByteDance, announced on Thursday that it has finalized a landmark agreement to create a new joint venture that will place TikTok’s US operations under majority American ownership, a move aimed at preventing a nationwide ban on the app used by more than 200 million Americans.
The agreement marks a major turning point in TikTok’s long-running standoff with Washington, which began in August 2020 when then-President Donald Trump first attempted to block the platform over national security concerns tied to data privacy and Chinese ownership.
Although US lawmakers passed legislation in April 2024 requiring ByteDance to divest TikTok’s US assets by January 2025 or face a ban — a law later upheld by the Supreme Court — Trump ultimately chose not to enforce the measure after negotiations over a restructuring deal gained momentum.
Under the finalized arrangement, a new entity named TikTok USDS Joint Venture LLC will oversee the protection of US user data, content moderation systems, and recommendation algorithms through enhanced cybersecurity and privacy safeguards. ByteDance shared limited details about the divestiture but confirmed that American and global investors will collectively own 80.1% of the venture, while ByteDance will retain a 19.9% minority stake.
Three managing investors — cloud technology firm Oracle, private equity giant Silver Lake, and Abu Dhabi-based investment company MGX — will each hold a 15% share.
Trump welcomed the agreement in a social media post, claiming TikTok “will now be owned by a group of Great American Patriots and Investors, the biggest in the world.” He also publicly thanked Chinese President Xi Jinping for approving the deal, saying cooperation from Beijing was critical to its completion.
A White House official confirmed to Reuters that both the US and Chinese governments had signed off on the arrangement. The Chinese Embassy in Washington declined to comment.
The new venture will operate TikTok’s US app, according to the White House, while handling backend services related to user data and algorithm security. The recommendation algorithm will be retrained and tested exclusively using US user data and will be stored within Oracle’s US-based cloud infrastructure.
TikTok said the venture’s investor group also includes the Dell Family Office — linked to Dell Technologies founder Michael Dell — along with Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital.
Former TikTok USDS executive Adam Presser has been appointed chief executive officer of the new venture, while Will Farrell will serve as chief security officer. TikTok CEO Shou Chew will join the board, continuing to oversee the platform’s global strategy.
Trump, who has more than 16 million followers on TikTok, has previously credited the app with helping him secure reelection. According to a photo published by the New York Times, TikTok executives presented Trump with internal data highlighting his popularity on the platform in December. The White House itself launched an official TikTok account last August.
Earlier reports had indicated that while ByteDance would retain control over revenue-generating businesses such as advertising and e-commerce, operational control over US data, content moderation, and algorithms would shift to the American-led venture. The new entity will earn a share of revenue in exchange for providing technology and data security services.
