TikTok’s U.S. future secured as new joint venture formally closes, shifting control away from ByteDance
TikTok says a majority American-owned joint venture has officially been established to keep the app operating in the United States, with Oracle, Silver Lake and MGX as managing investors. The new structure is designed to satisfy U.S. national security demands around data storage, algorithm handling and independent oversight.
A long-running U.S. showdown ends with a new ownership structure
TikTok’s yearslong political and regulatory standoff in Washington moved into a new phase this week after the company confirmed the closing of a restructuring that places its U.S. operations inside a newly formed entity: TikTok USDS Joint Venture LLC. The arrangement is meant to keep TikTok available to U.S. users and to address national security concerns that U.S. officials have raised since 2020 about Chinese ownership and potential access to American user data.
Under the new setup, ByteDance’s stake is reduced to 19.9%, while a larger consortium of investors holds the balance. The joint venture lists three “managing investors” — Oracle, Silver Lake, and Abu Dhabi-based MGX — each with a 15% stake. The project has been described as designed to comply with the U.S. divest-or-ban law passed in 2024 that targeted apps deemed controlled by foreign adversaries.
What the joint venture is responsible for
The new entity’s mandate is broad: it is tasked with securing U.S. user data and the recommendation algorithm, as well as overseeing content moderation and trust-and-safety operations within the United States. TikTok and its partners describe the program as aligning with major security standards, with U.S. user data hosted in Oracle’s U.S.-based cloud environment.
TikTok has also framed the structure as preserving a “global TikTok experience” for users while creating a U.S. governance and security perimeter around key sensitive assets. The joint venture’s safeguards are said to apply not only to TikTok but also to related apps and services, including CapCut and Lemon8.
Leadership and oversight
The joint venture is being led by Adam Presser, previously TikTok’s head of operations and trust and safety, as CEO. TikTok CEO Shou Zi Chew is on the board, and the entity will operate with a board designed to reflect majority American oversight. The broader investor group includes several additional firms and family offices beyond the three managing investors.
While financial terms were not publicly detailed in the announcement, the closure is a major milestone for creators, advertisers, and businesses that depend on TikTok in the U.S. market — and it marks a new template for how a major consumer platform might be ring-fenced to meet Washington’s national security demands.