TikTok announced on December 18, 2025, that it has signed binding agreements with key investors to establish a new U.S. joint venture. The move, detailed in an internal memo from CEO Shou Zi Chew, aims to address longstanding national security concerns regarding the app's Chinese ownership by ByteDance. This joint venture will operate independently, ensuring continued access for over 170 million American users while complying with federal mandates that threatened a nationwide ban.

The agreements involve a consortium led by Oracle Corporation, alongside private equity firm Silver Lake and Abu Dhabi-based investment company MGX, collectively holding 50% of the new entity, with each taking a 15% stake. Affiliates of existing ByteDance investors will own 30.1%, and ByteDance itself will retain a minority 19.9% share. The deal, expected to close on January 22, 2026, follows extensions granted by the Trump administration to the original divestiture deadline set under a law signed by former President Joe Biden.

Under the terms, the U.S. joint venture—named TikTok USDS Joint Venture LLC—will assume full responsibility for data protection, content moderation, algorithm security, and software assurance for American users. Oracle will serve as the trusted security partner, storing sensitive U.S. user data in a secure domestic cloud environment and auditing compliance. ByteDance will license its recommendation algorithm, allowing the new entity to retrain it on U.S. data, thereby mitigating fears of foreign influence or data access by Chinese authorities.

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The announcement marks a pivotal step in easing tensions between Washington and Beijing over technology and trade. Originating from bipartisan legislation passed in 2024 amid worries that ByteDance could be compelled to share user data or manipulate content under Chinese law, the framework was advanced through negotiations involving the White House. President Donald Trump, who has previously expressed support for preserving the platform, facilitated extensions and endorsed the structure, viewing it as a balanced resolution that protects national interests while maintaining TikTok's cultural and economic presence.

As the transaction progresses, with additional work required before finalization, the agreement positions TikTok to thrive under majority American governance, including a new seven-member board dominated by U.S. directors. This restructuring not only averts an imminent shutdown but also reinforces the app's role in e-commerce, entertainment, and social interaction, signaling a potential thaw in broader U.S.-China relations while prioritizing safeguards for American users' privacy and security.

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