US TikTok Deal: 80.1% Owned by Americans, ByteDance Retains 19.9% Stake

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.

TikTok Forms Majority US-Owned Joint Venture to Avoid American Ban

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."

Ownership Structure of the New TikTok US Venture

• 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.

How the Joint Venture Will Operate

US Data and Algorithm Management

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.

Revenue Sharing

The venture will receive a portion of revenue for its technology and data services, ensuring financial sustainability while maintaining US operational control.

Regulatory Approval and Background

• 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.

TikTok’s Popularity Among Political Figures

• 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.