ByteDance has agreed to create a new joint venture primarily owned by U.S. investors, aiming to prevent a nationwide ban on TikTok and reinforce protections for American user data. This development marks a significant shift for the platform, which boasts over 200 million American users and has faced ongoing regulatory pressures over its Chinese ownership.
The new entity, TikTok USDS Joint Venture LLC, will control American user data, as well as the app’s software and algorithms, according to ByteDance. The joint venture allocates an 80.1% ownership stake to U.S. and global investors, with ByteDance retaining a 19.9% position. Oracle, Silver Lake, and MGX are each slated to hold a 15% stake, placing management oversight in American hands.
Adam Presser will lead TikTok USDS as its chief executive, with TikTok CEO Shou Chew joining the board. The finalized arrangement aligns with terms laid out last September, when President Donald Trump postponed enforcement of a law that would prohibit TikTok’s U.S. operations unless its Chinese parent divested its interest.
This joint venture concludes a lengthy period of uncertainty for TikTok, which since August 2020 has faced bipartisan efforts in Washington to restrict its operations based on national security concerns. Both President Trump and former President Joe Biden had pushed for action against the app’s Chinese ties.
During the prolonged standoff, fears of a potential ban prompted a significant portion of TikTok’s U.S. content creators and users to migrate to competing platforms, such as Instagram Reels and YouTube Shorts. Additionally, some users shifted their activity to other social media outlets, including China’s RedNote.
While TikTok briefly went offline at the height of enforcement threats, the service has largely remained available in the U.S. due to successive delays granted by executive orders from President Trump. The platform’s continued presence was secured after both sides announced a tentative solution last September.
