TikTok Seals Landmark US Joint Venture Deal to Avert American Ban

WASHINGTON — TikTok has finalized a high-stakes agreement to establish a majority American-owned joint venture, a move designed to secure U.S. user data and avert a potential nationwide ban of the popular short-video app used by more than 200 million Americans. The deal, announced Thursday by TikTok’s Chinese parent company ByteDance, marks a major turning point after years of political and legal battles over national security concerns.

Under the agreement, the newly formed TikTok USDS Joint Venture LLC will be responsible for safeguarding U.S. user data, applications, and recommendation algorithms through enhanced cybersecurity and privacy measures. While ByteDance disclosed limited details about the divestiture, it confirmed that American and global investors will collectively own 80.1% of the venture, with ByteDance retaining a 19.9% minority stake.

The deal resolves a saga that began in August 2020, when then-President Donald Trump first attempted to ban TikTok over concerns about Chinese government access to U.S. user data. Those efforts culminated in a law passed in April 2024 requiring ByteDance to sell its U.S. TikTok assets or face a ban  legislation later upheld by the Supreme Court. Trump ultimately chose not to enforce the ban while negotiations continued.

Trump publicly praised the agreement, calling it a win for American ownership. In a social media post, he said TikTok “will now be owned by a group of Great American Patriots and Investors, the Biggest in the World,” and thanked Chinese President Xi Jinping for approving the deal. A White House official confirmed to Reuters that both the U.S. and Chinese governments signed off on the arrangement.

Three managing investors Oracle, Silver Lake, and Abu Dhabi-based MGX will each hold 15% stakes in the venture. Oracle will also play a critical role in hosting and securing TikTok’s U.S. data and algorithms within its U.S.-based cloud infrastructure. Additional investors include the Dell Family Office, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, Vastmere Strategic Investments, and NJJ Capital.

Leadership for the new entity has also been announced. Adam Presser, a former TikTok USDS executive, will serve as CEO, while Will Farrell (not the actor) has been appointed Chief Security Officer. TikTok CEO Shou Chew will sit on the board, continuing to oversee the platform’s global business and strategy.

TikTok said the venture will retrain, test, and update its content recommendation algorithm using U.S. user data, with full security oversight managed through Oracle. According to prior Reuters reporting, ByteDance will retain ownership of revenue-generating operations such as advertising and e-commerce, while ceding control of data, content moderation, and algorithms to the joint venture.

The agreement also reflects TikTok’s growing political relevance. Trump, who has more than 16 million followers on TikTok, has credited the app with helping him win reelection. The White House launched its own official TikTok account in August, further signaling the platform’s entrenched role in U.S. political and cultural life.

While some operational details remain undisclosed, the deal represents the most comprehensive effort yet to address U.S. national security concerns and ensures TikTok’s continued presence in the American digital landscape.