TikTok’s Chinese parent company, ByteDance, has finalized a deal to create a majority American-owned joint venture aimed at securing U.S. user data and preventing a nationwide ban of the popular short-video app, which has more than 200 million users in the United States.
The agreement marks a major turning point in TikTok’s long-running standoff with U.S. authorities, which began in August 2020 when former President Donald Trump first sought to ban the platform over national security concerns. A law passed in April 2024 later required ByteDance to divest its U.S. TikTok assets or face a ban, a measure that was upheld by the Supreme Court. Trump ultimately opted not to enforce the ban after the deal took shape.
Under the agreement, TikTok USDS Joint Venture LLC will be responsible for securing U.S. user data, applications and recommendation algorithms through enhanced privacy and cybersecurity measures. While ByteDance disclosed limited details, the ownership structure gives American and global investors a combined 80.1% stake, with ByteDance retaining 19.9%.
Oracle, Silver Lake and Abu Dhabi-based investment firm MGX will serve as the joint venture’s three managing investors, each holding a 15% stake. A White House official confirmed that both the U.S. and Chinese governments have approved the deal, though China’s embassy in Washington declined to comment.
Trump welcomed the agreement in a social media post, describing TikTok as now being owned by “a group of Great American Patriots and Investors.” He also thanked Chinese President Xi Jinping for approving the deal, calling the decision “appreciated.”
The joint venture will operate TikTok’s U.S. app, with U.S. user data and the platform’s recommendation algorithm retrained, tested and secured on Oracle’s U.S.-based cloud infrastructure. TikTok said the venture will handle backend operations related to data and technology, while a separate ByteDance-owned division will continue managing revenue-generating activities such as advertising and e-commerce.
Former TikTok USDS executives Adam Presser and Will Farrell have been appointed chief executive and chief security officer of the venture, respectively. TikTok CEO Shou Chew will also sit on the board.
Additional investors include the Dell Family Office, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI and NJJ Capital.
The deal comes as Trump, who has more than 16 million followers on TikTok, has openly credited the app with helping him win re-election. The White House launched its own official TikTok account in August, further underscoring the platform’s political relevance despite years of regulatory scrutiny.
