WASHINGTON — After a years-long standoff that threatened to silence one of the world’s most popular apps, TikTok has officially cemented its future in the United States. On Thursday, Jan. 22, the social media giant’s Chinese parent company, ByteDance, finalized a deal to transfer the majority control of its American operations to a group of U.S. and global investors, narrowly avoiding a nationwide ban.
The New “TikTok U.S.”
Under the agreement, a new independent entity known as TikTok USDS Joint Venture LLC has been established to manage the app for its estimated 200 million American users. This restructuring is designed to comply with a 2024 federal law that required ByteDance to divest its U.S. holdings or face expulsion from app stores.
TikTok Secures Future in U.S. with Major Ownership Deal
The ownership of the new venture breaks down as follows:
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The Managing Investors (45%): Three major firms—software giant Oracle, private equity firm Silver Lake, and UAE-based investment firm MGX—will each hold a 15% stake.
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ByteDance (19.9%): The former parent company retains a minority, non-controlling interest.
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Other Investors (~35%): The remaining share is distributed among a consortium that includes the family office of billionaire Michael Dell and trading firm Susquehanna International Group.
In total, just over 80% of the new entity will be owned by non-Chinese investors, satisfying U.S. government requirements for divestment.
Leadership and Security Overhaul
The new company will be led by Adam Presser, formerly TikTok’s head of operations, who steps into the role of CEO. He will report to a seven-member board of directors, the majority of whom are American citizens. TikTok’s global CEO, Shou Chew, will retain a seat on this new board.
A central component of the deal is a strict new security protocol. Oracle will serve as the “technological steward” for the U.S. platform. This role involves hosting all U.S. user data and, crucially, reviewing and validating the app’s source code to ensure there is no foreign interference. The company stated that the app’s recommendation algorithm—the code responsible for its viral “For You” feed—will be “retrained, tested, and updated” specifically for the U.S. market.
Political Victory and Relief for Creators
The finalization of the deal comes just days before a deadline set by the White House. President Donald Trump, who granted multiple extensions to the original deadline, celebrated the agreement on social media, thanking Chinese President Xi Jinping for his cooperation in approving the transaction.
For the millions of content creators and businesses that rely on the platform, the news brings a welcome end to uncertainty. While the corporate structure has changed significantly, TikTok has assured users that the app experience will remain seamless and that U.S. users will still be able to connect with the platform’s global community.
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