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ByteDance, the Chinese parent company of TikTok, announced on Thursday that it has completed a deal to form a primarily American-owned joint venture. This move aims to keep US user data secure and sidestep a potential ban on the popular short video app, which is used by more than 200 million Americans.
This development marks a significant milestone after prolonged disputes that started in August 2020 when President Donald Trump attempted to prohibit the app due to security issues. Although Trump later chose not to enforce a law from April 2024 requiring ByteDance to sell off its US assets by January, the Supreme Court upheld that measure.
ByteDance explained that TikTok USDS Joint Venture LLC would safeguard US user data, applications, and algorithms through rigorous data privacy and cybersecurity protocols. However, specifics about the divestment process remain limited.
Trump praised the agreement in a social media post, stating TikTok would now be owned by a group of “Great American Patriots and Investors, the biggest in the world.” He also credited Chinese President Xi Jinping with cooperating on the deal, expressing gratitude for his decision not to oppose it.
Under the agreement, American and global investors will own 80.1% of the venture, with ByteDance holding a 19.9% stake. The three leading investors managing the joint venture—Oracle, Silver Lake, and Abu Dhabi-based MGX—will each retain a 15% share.
A White House official confirmed to Reuters that both the U.S. and Chinese governments have approved the deal. The Chinese Embassy in Washington has yet to comment.
Last year, Trump stated that the deal aligned with the requirements under the 2024 law for divestiture. In September, the White House announced the venture would operate TikTok’s US app, though details about its specific business arrangements with ByteDance have not been publicly disclosed.
President Trump, who has amassed over 16 million followers on his TikTok account—crediting the platform with aiding his reelection—received a document from TikTok on December 22 highlighting his popularity on the app. The White House also launched an official TikTok account in August.
Additional investors in the joint venture include Dell Family Office, the investment firm founded by Michael Dell, alongside Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital.
Leadership positions have been appointed, with Adam Presser serving as CEO and Will Farrell as Chief Security Officer. TikTok CEO Shou Chew has also joined the venture’s board, overseeing global business strategies.
The joint venture will be responsible for retraining, testing, and updating TikTok’s content recommendation algorithms based on US user data. This data and the algorithm will be secured within Oracle’s US cloud infrastructure.
In September, Reuters reported that ByteDance would retain ownership of TikTok’s US operations but would transfer control over data, content, and algorithms to the new joint venture. The venture’s role is primarily backend—handling US user data and algorithm management—while ByteDance’s wholly owned division continues to oversee revenue-generating activities like e-commerce and advertising.
The joint venture will receive a portion of revenue from its technology and data services, according to sources familiar with the deal.
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