TikTok’s parent company, ByteDance, has finalized a landmark deal to form a majority American-owned joint venture, aimed at securing U.S. user data and preventing a potential U.S. ban on the app. The move comes after years of legal and regulatory challenges, ensuring that over 200 million U.S. users can continue accessing the platform safely.
ByteDance announced on Thursday the creation of TikTok USDS Joint Venture LLC, a new entity that will secure U.S. user data, apps, and algorithms through enhanced data privacy and cybersecurity measures.
The agreement comes after years of regulatory scrutiny, starting in August 2020 when former President Donald Trump attempted to ban the app over national security concerns.
"TikTok will now be owned by a group of Great American Patriots and Investors, the Biggest in the World," Trump said in a social media post, praising the agreement.
He also thanked Chinese President Xi Jinping, stating:
"He could have gone the other way, but didn’t, and is appreciated for his decision."
American and global investors: 80.1% stake
ByteDance: 19.9% stake
Three managing investors (Oracle, Silver Lake, MGX) each hold 15%
Other venture investors include:
Dell Family Office (Michael Dell)
Vastmere Strategic Investments
Alpha Wave Partners
Revolution
Merritt Way
Via Nova
Virgo LI
NJJ Capital
Former TikTok USDS executives Adam Presser and Will Farrell have been appointed CEO and Chief Security Officer respectively. TikTok CEO Shou Chew joins the venture’s board.
TikTok said the venture will:
Retrain, test, and update TikTok’s content recommendation algorithm using U.S. user data
Secure the algorithm in Oracle’s U.S. cloud
"The venture will serve as backend operations to the U.S. company and handle U.S. user data and the algorithm," sources explained.
Revenue-generating operations like e-commerce and advertising will remain under ByteDance’s control.
The venture will receive a portion of revenue for its technology and data services, ensuring financial sustainability while maintaining US operational control.
Both the U.S. and Chinese governments approved the deal
Trump previously said the deal meets the terms of divestiture requirements under the 2024 law
The Supreme Court upheld the law requiring ByteDance to divest its U.S. assets to avoid a ban
The White House in September confirmed the venture would operate TikTok’s U.S. app, though specific details of the deal, such as ByteDance’s business relationship with the JV, remain undisclosed.
Former President Trump has over 16 million followers on TikTok
He credited the platform for helping him in his reelection campaign
The White House also launched its official TikTok account in August 2025
Conclusion
The new U.S. joint venture represents a major milestone for TikTok, securing the app’s continued operation in the United States while addressing national security concerns. The majority U.S. ownership structure ensures compliance with federal regulations, while ByteDance retains a minority stake in the venture, maintaining a global operational presence.