In a major resolution to years of intense regulatory scrutiny and national security debates, TikTok has finalized a transformative agreement to establish a new U.S.-based joint venture. The deal transfers significant control of its American operations to non-Chinese investors, averting a potential nationwide ban on the wildly popular short-video app used by over 170 million Americans.
Announced on January 22, 2026, the arrangement creates the TikTok USDS Joint Venture LLC (U.S. Data Security Joint Venture), structured to address longstanding concerns from U.S. lawmakers about data privacy, potential Chinese government influence, and algorithmic manipulation. The venture builds on foundations laid during the Trump administration, which originally greenlit a similar framework in September 2025, valuing the U.S. operations at around $14 billion at the time.
Key to the structure is a majority American and non-Chinese ownership model. ByteDance, TikTok’s Chinese parent company, retains a minority stake of 19.9%. The remaining 80.1% is held by American and global investors. Leading the group are three managing investors — Oracle Corp., Silver Lake Management LLC, and Abu Dhabi-based MGX — each holding 15% stakes. Additional ownership comes from existing ByteDance investors (approximately 30.1% in some reports) and other consortium members, ensuring overall non-Chinese control.
The new entity operates independently with robust safeguards designed to protect U.S. users. U.S. user data will reside in Oracle’s secure cloud environment within the United States. The venture implements comprehensive cybersecurity measures, including third-party audits, adherence to standards like NIST, ISO 27001, and CISA requirements, ongoing source code reviews (with Oracle as a trusted security partner), algorithm security protocols, content moderation assurances, and software validation processes.
Leadership reflects the hybrid yet American-centric governance. TikTok CEO Shou Chew retains a board seat and continues overseeing the global business, while Adam Presser, formerly TikTok’s head of operations, trust, and safety, steps in as CEO of the American venture. The board comprises seven members, a majority American, including representatives from Oracle, Silver Lake (co-CEO Egon Durban), MGX, and other partners such as TPG, Susquehanna International Group, and DXC Technology.
This breakthrough ends a saga that began over five years ago, when national security fears first prompted calls to restrict or ban TikTok in the U.S. Congress passed legislation in 2024 mandating divestiture by ByteDance or a ban, citing risks of data access by Beijing or propaganda dissemination — allegations TikTok has consistently denied.
The finalized deal, approved by both U.S. and Chinese authorities, allows seamless continuation for American users — no app changes, no downloads required. It shifts focus from existential threats to operational stability under strengthened data protections.
As TikTok enters this new chapter, the venture positions the platform for long-term growth in the U.S. while demonstrating a workable path for foreign-owned tech firms navigating geopolitical tensions. The agreement underscores a pragmatic compromise in an era of heightened tech sovereignty concerns.
MacDailyNews Take: Have fun feeding that algorithm and endlessly scrolling into 2026 like it’s still 2018, American TikTok addicts!
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