TikTok has announced the creation of a new majority American-owned joint venture to operate its United States business, a move aimed at averting a looming ban linked to its Chinese ownership.
Gatekeepers News reports that the new entity, TikTok USDS Joint Venture LLC, will serve more than 200 million users and 7.5 million businesses across the US, while introducing stricter safeguards for data protection, algorithm security and content moderation.
The restructuring follows a 2024 law signed under former President Joe Biden, which required China-based ByteDance to sell TikTok’s US operations or face a ban in its biggest market.
Former President Donald Trump, who welcomed the deal and claimed credit for it, also thanked Chinese President Xi Jinping for approving the arrangement.
“I am so happy to have helped in saving TikTok!” Trump wrote on Truth Social.
“It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice.”
“I would also like to thank President Xi of China for working with us and, ultimately, approving the Deal,” he added.
Under the agreement, ByteDance retains a 19.9 percent stake, keeping its ownership below the 20 percent cap required by law.
Three major investors — Silver Lake, Oracle, and Abu Dhabi-based MGX — each hold 15 percent stakes. Other backers include the Dell Family Office, affiliates of Susquehanna International Group and General Atlantic, among others.
The joint venture will control trust and safety policies and content moderation for US users, while TikTok’s global operations will handle international product integration and commercial activities such as e-commerce and advertising.
TikTok said all US user data will be stored in Oracle’s secure cloud environment, with cybersecurity systems audited by independent third parties and compliant with federal standards.
Governance will be handled by a seven-member, majority-American board, including TikTok CEO Shou Chew and executives from leading investment firms. Adam Presser was named chief executive officer of the new entity, while Will Farrell will serve as chief security officer.
US lawmakers have long raised concerns that China could use TikTok to access Americans’ data or manipulate public opinion through its algorithm. While Trump echoed those fears during his first term, he later delayed enforcement of the law through executive orders, most recently extending the deadline to January 22.
The deal confirms an outline previously shared by Chew with employees. In September, Vice President JD Vance said the US business could be valued at around $14 billion, although final pricing will be determined by investors.
Trump has previously named Oracle executive chairman Larry Ellison as a major figure in the deal. Ellison, a longtime Trump ally, has also been involved in several high-profile US technology and media transactions.
