TikTok Signs Deals for New US Joint Venture
TikTok and its parent company ByteDance have signed binding agreements with a group of primarily American investors to create a new U.S. joint venture that will oversee operations in the United States. The move marks a key milestone in a years-long effort to keep the short-video app running in the U.S. amid regulatory pressure and laws aimed at foreign-adversary controlled applications.
Ownership and structure of the new venture
Under the agreements, the new U.S. entity — to be called TikTok USDS Joint Venture LLC — will be majority controlled by American investors. Oracle, Silver Lake and Abu Dhabi-based MGX are among the managing investors who will hold significant stakes. ByteDance will retain a minority stake under U.S. legal limits that seek to reduce influence by its Chinese parent. Affiliates of existing ByteDance investors will also hold part of the company. The joint venture will be responsible for key functions including data protection, algorithm security, content moderation and software assurance for U.S. users.
TikTok’s CEO, Shou Zi Chew, said the agreements pave the way for operations to continue in the U.S., where the platform has tens of millions of users. The transaction is expected to close on January 22, 2026, subject to regulatory and shareholder approvals. This deal follows national security concerns and legislation that could have led to a ban of the app in the U.S. if no compliant ownership structure were put in place.
What this means for users
Once the joint venture is operational, it aims to ensure TikTok remains available to its large U.S. user base while addressing data privacy and national security requirements. The development ends years of uncertainty over the app’s future in the country and provides a framework for continued service with enhanced oversight.
