ByteDance, the Chinese parent company of TikTok, has officially signed binding agreements to transfer control of its U.S. operations to a newly formed group of investors.
This strategic move aims to resolve years of legal battles and prevent a total ban of the short-video app in the United States.
The deal establishes a new entity called TikTok USDS Joint Venture LLC. Under the agreement, a consortium of American and international investors including cloud giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX will hold a majority 80.1% stake. ByteDance will retain a minority 19.9% share.
A Long-Awaited Resolution
The agreement marks a significant milestone for TikTok, which currently serves over 170 million U.S. users. Efforts to restrict or ban the app began as early as 2020 under the first Trump administration, citing national security concerns regarding data privacy and Chinese government influence.
The transaction aligns with a 2024 law requiring ByteDance to divest its U.S. assets. President Trump, who previously delayed enforcement of the ban, has declared that this new structure meets the necessary legal requirements.
Key Structural Details:
- Valuation: Although final figures were not disclosed, earlier estimates placed the value of the new U.S. entity at approximately $14 billion.
- Governance: The board will consist of seven members. Americans will hold the majority of seats, while ByteDance will appoint only one representative.
- Security Partner: Oracle will act as the “trusted security partner.” It will be responsible for auditing compliance and storing all sensitive U.S. user data within a secure, domestic cloud environment.
Operational Split and Data Security
In an internal memo, TikTok CEO Shou Zi Chew explained that the joint venture would operate as an independent entity. It will hold authority over content moderation, algorithm security, and data protection.
However, the revenue-generating side of the business—including advertising, e-commerce, and marketing—will remain under a separate division managed by ByteDance. The joint venture will receive a portion of this revenue in exchange for providing its technology and data services.
Political Reactions and Lingering Questions
The deal has sparked both praise and criticism across the political spectrum. Proponents, including the White House, see it as a way to protect national security while keeping a popular platform operational.
Conversely, critics have raised concerns about the ongoing relationship between the joint venture and ByteDance. Some experts remain skeptical about whether the core algorithm has been truly transferred or if it remains under Beijing’s control.
Political Perspectives:
- Support: President Trump has credited TikTok’s influence with helping his reelection and maintains a massive personal following on the app.
- Opposition: Senator Elizabeth Warren characterized the deal as a “billionaire takeover,” questioning the close ties between the President and investors like Oracle CEO Larry Ellison.
- Congressional Oversight: Representative John Moolenaar announced plans for a 2026 hearing to review the leadership of the new TikTok entity.
The deal is expected to officially close on January 22, 2026, ending a period of immense uncertainty for the platform’s American creators and businesses.
READ MORE: Blair and Dimon Warn: Europe Must Reform or Risk Irrelevance
Armenian Dram
Ghana Cedi
Gambian Dalasi
Guinea Franc
Nigerian Naira
CFA Franc BEAC
