TikTok’s long-running battle to stay online in the United States has taken a decisive turn, as its Chinese parent company moves to hand operational control of the app to a new US-led entity, reshaping ownership while keeping the platform alive for its vast American audience.
ByteDance confirmed it has signed binding agreements with three major investors to form a new joint venture that will operate TikTok’s US app.
The move is designed to comply with US law and avert a nationwide ban that has loomed over the platform for years.
Under the deal, American and global investors will hold an 80.1 per cent stake in the new entity, while ByteDance will retain 19.9 per cent following the divestiture.
The joint venture will be named TikTok USDS Joint Venture LLC and is expected to close on 22 January.
TikTok chief executive Shou Zi Chew told employees in a memo:
“We have signed agreements with investors regarding a new TikTok US joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
The joint venture will be led by a consortium of investors, including Oracle, Silver Lake and Abu Dhabi-based MGX.
Each of the three will take a 15 per cent stake, giving them a combined 45 per cent ownership.
Another 30.1 per cent will be held by affiliates of certain existing ByteDance investors.
Despite the reduced stake, ByteDance will still appoint one of seven board members.
Americans will hold the majority of board seats, reinforcing US oversight of the platform’s operations.
Oracle declined to comment on the agreement, while the White House referred questions back to TikTok.
The agreement marks a milestone in a dispute that dates back to August 2020, when then President Donald Trump first attempted to ban TikTok over national security concerns.
The issue resurfaced with a 2024 law requiring TikTok to stop operating in the US unless ByteDance divested its American assets.
Trump, now in his second term, delayed enforcement of that law until 20 January and said in September that the proposed deal met the divestiture requirements.
He has credited TikTok, where he has more than 15 million followers, with helping him win re-election.
The White House also launched its own official TikTok account last August.
According to Chew, the new joint venture will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance.
Oracle will act as TikTok’s “trusted security partner”, responsible for auditing compliance and safeguarding sensitive US user data.
That data will be stored on Oracle-run cloud infrastructure located within the United States.
Trump’s September order also requires TikTok’s algorithm to be retrained using US user data and monitored by the joint venture’s security partners, placing control of the recommendation system firmly under US oversight.
While control of the US app will sit with the new entity, TikTok’s global operations will continue to manage certain functions.
Chew noted that TikTok’s international business will handle global product interoperability and selected commercial activities, including e-commerce, advertising and marketing.
This division of responsibilities has raised questions in Washington about how separate the US business will be from the wider TikTok platform.
Some lawmakers remain sceptical.
Democratic Senator Elizabeth Warren criticised the arrangement, writing on X:
“Trump wants to hand over even more control of what you watch to his billionaire buddies. Americans deserve to know if the president struck another backdoor deal for this billionaire takeover of TikTok.”
On the Republican side, Representative John Moolenaar, who chairs the House Select Committee on China, has said he plans to host the leadership of the new TikTok entity at a hearing in 2026.
Analysts expect the deal to move smoothly through the approval process, though sign-off from Chinese authorities is still required.
Beijing has not publicly confirmed its position, despite Trump saying Chinese President Xi Jinping supports the arrangement.
Craig A Huber of Huber Research Partners said the transaction is unlikely to face major obstacles.
“At this stage, I see no regulatory issues, particularly given the federal government and President Trump were very involved in putting the whole sale together from the beginning.”
If completed as planned, the deal would close a chapter of uncertainty for TikTok’s 170 million US users, while setting a new template for how global tech platforms navigate political pressure and national security rules in their biggest markets.
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