TikTok announced Thursday it has established a majority American-owned joint venture to operate its U.S. business, allowing the company to avoid a ban over its Chinese ownership.
The new entity, TikTok USDS Joint Venture LLC, will serve more than 200 million users and 7.5 million businesses in the United States. TikTok said the venture will implement strict safeguards for data protection, algorithm security, and content moderation. ByteDance, TikTok’s Chinese parent company, retains a 19.9 percent stake, keeping ownership below the 20 percent threshold set by U.S. law.
Three major investors—Silver Lake, Oracle, and Abu Dhabi-based AI investment fund MGX—each hold 15 percent stakes. Oracle executive chairman Larry Ellison, a longtime ally of former President Donald Trump, is among the key figures in the arrangement. Other investors include the Dell Family Office, affiliates of Susquehanna International Group, General Atlantic, and several investment firms.
Under the structure, the joint venture will oversee trust and safety policies and content moderation for U.S. users, while TikTok’s global operations will manage international product integration, e-commerce, and advertising. U.S. user data will be stored in Oracle’s secure cloud environment, with cybersecurity audited by third-party experts and adhering to federal standards, the company said.
A seven-member, majority-American board will govern the venture, including TikTok CEO Shou Chew and executives from the investment firms. Adam Presser has been named CEO of the new entity, with Will Farrell serving as chief security officer.
The move addresses concerns raised under a law passed during President Joe Biden’s administration, which required Chinese-owned ByteDance to sell TikTok’s U.S. operations or face a ban in its largest market. Trump, who had warned of potential national security risks from TikTok in his first presidency, delayed enforcement of the law through several executive orders, most recently extending the deadline to January 22.
Trump publicly expressed his approval of the deal on Thursday. “I am so happy to have helped in saving TikTok!” he wrote on Truth Social. “I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal.”
The agreement largely reflects plans shared with TikTok staff last month by Chew. Trump previously indicated in September that a new venture had been negotiated with China to meet the law’s requirements. Ellison, one of the wealthiest figures in the U.S., has been highlighted by Trump as a central player in the venture, and has also been involved in AI partnerships and media acquisitions alongside his family.
The joint venture is expected to maintain operations while satisfying U.S. regulators’ concerns about data security and foreign influence, preserving TikTok’s access to its largest market.
