TikTok has put an end to long-standing uncertainty by signing an agreement to transfer control of its U.S. operations largely to a group of American investors. This decision comes amid U.S. government national security concerns and growing pressure on the company’s China-based owner, ByteDance.
Under the agreement, a new joint venture will be established to manage TikTok’s operations in the United States. Major international investors such as Oracle, Silver Lake, and UAE-based MGX will participate in this new entity. The investor group will control 80.1% of TikTok’s U.S. operations, while ByteDance will retain a 19.9% stake.
The newly formed company will operate under the name TikTok USDS Joint Venture LLC. It will be responsible for managing U.S. user data, content moderation, algorithm security, and software audits. Technology giant Oracle will serve as the official security partner to ensure compliance with security requirements.
The agreement is expected to be formally completed on January 22, 2026. Its goal is to eliminate the risk of TikTok being banned in the United States and to ensure continued access to the platform for more than 170 million American users.
For years, the core issue of the dispute has been the U.S. government’s demand that TikTok be separated from the control of the Chinese company ByteDance. This agreement aims to address those concerns by placing data security and content governance more firmly under American oversight.
