TikTok Restructures US Operations With American-Led Venture to Avert Ban
TikTok announced on Thursday that it has set up a new joint venture with majority American ownership to manage its operations in the United States, a move that enables the popular video-sharing platform to continue operating despite concerns over its Chinese ties.
The app, one of the world’s most influential digital entertainment platforms, has long faced scrutiny in Washington due to fears related to user data privacy and potential national security risks stemming from its links to China.
According to the company, the newly formed TikTok USDS Joint Venture LLC will cater to more than 200 million American users and 7.5 million businesses. TikTok said the entity will enforce enhanced safeguards for data security and content moderation.
The restructuring follows legislation enacted during former president Joe Biden’s administration that required ByteDance, TikTok’s Chinese parent company, to divest its US operations or face a nationwide ban.
Former president Donald Trump welcomed the development, taking credit for facilitating the agreement and thanking Chinese President Xi Jinping for approving the arrangement. In a post on Truth Social, Trump said he was pleased to have played a role in keeping TikTok operational in the US and described the platform’s new ownership as being in American hands.
Ownership and cybersecurity measures
Under the new setup, ByteDance will retain a 19.9 per cent stake, remaining below the 20 per cent ownership cap set by US law. Investment firms Silver Lake, Oracle, and Abu Dhabi-based AI fund MGX will each hold 15 per cent stakes in the venture. Oracle chairman Larry Ellison, a longtime Trump associate, is among the prominent figures involved.
Additional investors include the Dell Family Office, affiliates of Susquehanna International Group, and General Atlantic.
The joint venture will have full authority over trust, safety, and content moderation policies for US users, while TikTok’s global operations will continue overseeing international product integration, advertising, and e-commerce services.
TikTok confirmed that US user data will be stored within Oracle’s secure cloud infrastructure, with cybersecurity protocols reviewed by independent auditors and aligned with federal standards.
Jasmine Enberg, co-CEO of creator-economy media firm Scalable, said the deal would reassure users but noted that uncertainties remain. She added that TikTok is likely working to ensure advertisers that operations and marketing strategies will remain unaffected.
Governance and political backdrop
The new entity will be overseen by a seven-member board dominated by American representatives, including TikTok CEO Shou Chew and executives from participating investment firms. Adam Presser has been named chief executive of the joint venture, while Will Farrell will serve as chief security officer.
US lawmakers have long warned that TikTok’s algorithm could be used by China to collect data or influence public opinion — concerns raised during Trump’s first term in office. Despite this, Trump repeatedly delayed enforcement of the divestment law through executive orders, most recently extending the deadline to January 22.
The finalized agreement aligns with a framework previously shared with TikTok staff by Chew. In September, Vice President JD Vance said the US operation could be valued at around $14 billion, though final pricing would be determined by investors.
Trump has previously highlighted Ellison’s involvement in the deal, and the Oracle founder has recently gained renewed attention through his collaboration with Trump on major artificial intelligence initiatives involving OpenAI.
