ByteDance seals deal to shift TikTok US control to investors
ByteDance has signed binding agreements to create a new joint venture that will take control of TikTok’s U.S. operations, a major step toward avoiding a nationwide ban and ending years of political and legal uncertainty around the popular app.
Under the deal, American and global investors will own 80.1% of the new entity, while ByteDance will retain a 19.9% stake, according to details confirmed by U.S. officials and TikTok. Major investors include Oracle, Silver Lake, and Abu Dhabi–based MGX. The arrangement is designed to address long-standing U.S. concerns over national security and data protection, News.Az reports, citing Reuters.
The new company, expected to be called TikTok USDS Joint Venture LLC, will operate TikTok’s U.S. app independently, with authority over data security, content moderation, and algorithm oversight, TikTok CEO Shou Zi Chew told employees in an internal memo. Sensitive U.S. user data will be stored on Oracle’s U.S.-based cloud infrastructure, with the company serving as a “trusted security partner.”
The agreement follows years of pressure on ByteDance to divest TikTok’s U.S. business, a campaign that began in 2020 and intensified under a 2024 law threatening a ban unless ownership changed. TikTok is used by more than 170 million Americans, making the outcome of the negotiations highly significant for both users and advertisers.
Despite the breakthrough, questions remain about ByteDance’s ongoing role, particularly regarding control of TikTok’s algorithm and business ties between the new joint venture and the parent company. Some U.S. lawmakers and analysts have called for continued scrutiny once the deal closes, which is expected in January.
President Donald Trump, who previously pushed to ban TikTok, has since credited the platform with helping his political outreach and has publicly supported the deal. Meanwhile, critics argue the agreement still lacks transparency and warn of a potential concentration of influence among wealthy investors.
The final structure includes a seven-member board, with ByteDance appointing one member and Americans holding the majority of seats. If completed as planned, the deal would mark the most decisive shift yet in TikTok’s U.S. ownership—and could redefine how global tech firms navigate national security concerns in the digital age.
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