After years of uncertainty over TikTok’s future in the United States, a deal for the app’s US business has been finalized. The new US entity is called TikTok USDS Joint Venture. ByteDance has retained a 19.9 percent percent stake in the new business, with the rest controlled by a group of non-Chinese investors, including Oracle, Silver Lake and MGX, an Emirati-state owned investment firm, all of which have a 15 percent stake. Dell CEO Michael Dell and other investors have smaller stakes in the new company.
The terms of the deal were first leaked last month, after TikTok CEO Shou Chew reportedly told employees in a memo that TikTok and ByteDance had agreed to a group of investors. This ends a lengthy saga and months of slow progress as the agreement was being worked out, ensuring that the app will remain available in the US after years of being on the verge of a ban in the country.
President Donald Trump, who had tried to ban the app during his first term in office, praised the deal in a post 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,” he wrote.”I only hope that long into the future I will be remembered by those who use and love TikTok.”
According to TikTok’s announcement, the joint venture will protect American users’ data with Oracle’s secure US cloud environment. It will also retrain TikTok’s algorithm on US users’ data and will be in charge of content moderation in the US. The entity promises interoperability, as well, promising that users will still get international content and, if they’re a creator, viewers. “The safeguards provided by the Joint Venture will also cover CapCut, and Lemon8 and a portfolio of other apps and websites in the US,” TikTok said.
The new entity will be overseen by a seven-member board of directors, most of whom are Americans. It includes, Shou Chew, the Chief Executive Officer of TikTok, Silver Lake co-CEO Egon Durban, Oracle Executive Vice President Kenneth Glueck and MGX Chief Strategy and Safety Officer David Scott. Adam Presser, who had previously been head of operations and trust and safety at TikTok, is the CEO of TikTok USDS Joint Venture.
Exactly what the new joint venture means for US users of TikTok is unclear. Shortly after the deal was announced, TikTok introduced new terms of service for US users. As the BBC notes, the new terms include provisions relating to use of the app by kids under 13 (they are limited to the “Under 13 Experience”) and that the “TikTok USDS Joint Venture does not endorse any content” in the app. The company hasn’t announced specific changes to the app’s algorithm or other core features.
Update, January 23, 2026, 10:58AM PT: This post was updated to add a statement from President Trump, and with additional information about TikTok’s new terms of service.
