TikTok’s Chinese parent company ByteDance has finalized an agreement to form a majority American-owned joint venture — named TikTok USDS Joint Venture LLC — to keep the app operating in the United States while addressing national security concerns that had fueled a possible ban.
Here’s what the deal includes:
-
Major investors like Oracle, Silver Lake, and MGX will hold most of the ownership in the new U.S. company.
-
ByteDance will retain a minority stake (19.9 %) in the venture.
-
The new entity is designed to secure U.S. user data, apps, and the recommendation algorithm under American control through strong cybersecurity and privacy protections.
-
Leadership roles include former TikTok executives and a majority-American board, with TikTok’s global CEO joining the venture’s board.
-
The deal has approval from both U.S. and Chinese authorities and narrowly sidesteps a federal ban that had been threatened after national security scrutiny.
This development marks a major shift in TikTok’s future in the U.S., allowing about 200 million American users to continue using the platform.