In a major move announced in a company memo this week, TikTok has signed binding agreements with Oracle, Silver Lake and Abu Dhabi’s MGX to form a new United States joint venture, ensuring the app can keep thriving across America. 🚀
This move comes after years of uncertainty for TikTok in the United States, dating back to August 2020 when the app faced a proposed ban under the Trump administration.
The new entity, TikTok USDS Joint Venture LLC, will be 50% owned by the American-led consortium. Oracle, Silver Lake and MGX will each hold a 15% stake, affiliates of existing ByteDance investors will own 30.1%, and ByteDance retains a 19.9% share.
Under the deal, a seven-member majority-American board will oversee data protection, algorithm security and content moderation — all designed to safeguard U.S. user data and national security interests. The agreement is set to close on January 22, 2026.
“With these agreements in place, our focus must stay where it’s always been — firmly on delivering for our users, creators, businesses and the global TikTok community,” wrote CEO Shou Zi Chew in the memo.
Highlights:
- American-led control: 50% ownership & majority board
- Algorithm reboot: Retraining recommendation engine with U.S. data to prevent outside manipulation
- Clear roles: U.S. entity handles data protection; global teams manage ads, e-commerce & product interoperability
- User reassurance: Over 170 million Americans keep creating, sharing & exploring
For young entrepreneurs and content creators, this joint venture promises stability and fresh opportunities on one of the world’s most dynamic platforms. Stay tuned for TikTok’s next chapter! 🌟
Reference(s):
TikTok signs deal to form new U.S. joint venture, internal memo says
cgtn.com
