Social Media
ByteDance Signs TikTok U.S. Joint Venture Deal to Avert American Ban
Under the agreement, the newly formed TikTok USDS Joint Venture LLC will be owned 80.1% by non-Chinese investors, including cloud computing giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment firm MGX. Affiliates of existing ByteDance investors will also hold a significant portion of the company.
TikTok’s long-running battle with Washington may finally be nearing its end. On December 18, 2025, Chinese tech giant ByteDance signed binding agreements to form a new joint venture that will take control of TikTok’s U.S. operations, a critical step toward avoiding a nationwide ban of the popular short-video app.
The deal hands majority ownership and operational authority to American and global investors, while allowing ByteDance to retain a 19.9% minority stake. TikTok says the agreement directly addresses U.S. national security concerns that have hovered over the platform since 2020.
Who Owns the New TikTok U.S. Entity?
Under the agreement, the newly formed TikTok USDS Joint Venture LLC will be owned 80.1% by non-Chinese investors, including cloud computing giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment firm MGX. Affiliates of existing ByteDance investors will also hold a significant portion of the company.
ByteDance will appoint one of seven board members, with American directors holding the majority of seats—an arrangement designed to demonstrate U.S. control and oversight.
Vice President JD Vance previously said the new company would be valued at around $14 billion, though the final valuation has not been publicly disclosed.
How the Deal Addresses National Security Concerns
According to a memo from TikTok CEO Shou Zi Chew, the joint venture will operate as an independent entity with authority over U.S. data protection, content moderation, algorithm security, and software assurance.
Oracle will act as TikTok’s “trusted security partner,” responsible for auditing compliance and safeguarding sensitive American user data. All U.S. data will be stored on Oracle-managed cloud servers located within the United States.
However, questions remain over the platform’s recommendation algorithm—specifically whether it has been fully transferred, licensed, or remains under indirect influence from ByteDance. Critics argue this point will be key in determining whether the deal truly neutralizes security risks.
Political Reactions and Criticism
Donald Trump, who first attempted to ban TikTok in 2020, has since credited the app with boosting his political reach and has more than 15 million followers on the platform. His administration delayed the enforcement of the TikTok ban law to allow negotiations to conclude.
Not everyone is convinced. Senator Elizabeth Warren criticized the agreement, calling it a potential “billionaire takeover” and demanding transparency around investor influence and content control. Senator Ron Wyden also questioned whether the deal meaningfully protects user privacy.
What This Means for Users and Businesses
For TikTok’s 170 million U.S. users and more than seven million American small businesses that rely on the platform, the deal offers cautious relief after years of uncertainty. Creators and entrepreneurs have welcomed the prospect of continuity, though many say they will reserve judgment until the new ownership structure is fully operational.
The deal is expected to close on January 22, potentially ending one of the most contentious tech battles in recent U.S.-China relations.
