TikTok Establishes U.S. Joint Venture to Continue Operations
TikTok has formed a new U.S.-based joint venture, TikTok USDS Joint Venture LLC, to address national security concerns and maintain its presence in the American market.
TikTok has finalized the creation of TikTok USDS Joint Venture LLC, a U.S.-based entity designed to address national security concerns and ensure the platform's continued operation in the United States. This move follows legislative pressure requiring TikTok's Chinese parent company, ByteDance, to divest its U.S. operations.
The joint venture is backed by major investors, including Oracle, Silver Lake, and Abu Dhabi-based MGX, each holding a 15% stake. ByteDance retains a 19.9% share, while the remaining 30.1% is held by affiliates of existing ByteDance investors. The new entity will be governed by a seven-member board, with a majority of American directors.
Adam Presser, formerly TikTok's head of operations and trust and safety, has been appointed CEO of the joint venture. The entity will oversee U.S. data protection, algorithm security, content moderation, and software assurance. Oracle will serve as the trusted security partner, managing U.S. user data within its cloud infrastructure.
The agreement stipulates that the joint venture will retrain TikTok's recommendation algorithm using U.S. user data to prevent external manipulation. This restructuring aims to alleviate concerns about data privacy and foreign influence, ensuring that TikTok's 170 million American users can continue accessing the platform without interruption.
The deal is valued at approximately $14 billion and is set to close on January 22, 2026. This development marks the culmination of efforts to resolve regulatory challenges and secure TikTok's future in the U.S. market.
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