ByteDance seals majority US-owned TikTok venture to avert US ban

TikTok’s Chinese parent ByteDance has finalized a long-anticipated deal to place the app’s US operations into a new, majority American-owned joint venture, securing US user data and averting a potential nationwide ban.

The agreement marks a major milestone after nearly five years of political, legal, and regulatory battles over national security concerns surrounding the short-form video platform, which is used by more than 200 million Americans.

The deal comes after years of scrutiny that began in August 2020, when then-President Donald Trump attempted to ban TikTok over concerns about Chinese government access to US user data.

A law passed in April 2024 required ByteDance to sell TikTok’s US assets by January 2025 or face a ban, a measure later upheld by the Supreme Court.

Trump later opted not to enforce the law, issuing executive orders that paused enforcement while negotiations continued.

Majority American ownership and investor structure

Under the agreement, the newly formed TikTok USDS Joint Venture LLC will be owned 80.1% by American and global investors, with ByteDance retaining a 19.9% stake.

TikTok said the venture’s three managing investors—Oracle, Silver Lake, and Abu Dhabi-based MGX—will each hold 15%.

Other investors include Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital.

The joint venture will be governed by a seven-member board, the majority of whom are American.

Board members include TikTok CEO Shou Chew, TPG Global’s Timothy Dattels, Susquehanna International Group’s Mark Dooley, Silver Lake co-CEO Egon Durban, DXC Technology CEO Raul Fernandez, Oracle’s Kenneth Glueck, and MGX’s David Scott.
A White House official told Reuters that both the US and Chinese governments had signed off on the deal, though China has not issued a public statement.

Trump praised the agreement in a social media post, saying TikTok “will now be owned by a group of Great American Patriots and Investors, the Biggest in the World.”

He also thanked Chinese President Xi Jinping “for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision.”

Data security, algorithms and operations

TikTok said TikTok USDS Joint Venture “will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users.”

The venture will secure US user data, apps, and algorithms through data privacy and cybersecurity measures, with TikTok’s content-recommendation algorithm hosted in Oracle’s US cloud.

The algorithm will be retrained, tested, and updated using US user data.

According to sources cited by Reuters previously, the venture will handle backend operations, US user data, and the algorithm, while a separate ByteDance-owned division will control revenue-generating businesses such as advertising and e-commerce.

The venture will receive a portion of revenue for its technology and data services.

Leadership and political context

Adam Presser, TikTok’s head of operations and trust and safety, has been appointed CEO of the new venture, while Will Farrell has been named chief security officer.

Chew will serve as a director while continuing to lead TikTok’s global business and strategy.

Trump, who has more than 16 million followers on TikTok, credited the app with helping him win reelection.

The White House launched an official TikTok account in August, underscoring the platform’s continued political relevance as it transitions to its new ownership structure.

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