ByteDance finalized a deal to create a TikTok US joint venture in January 2026, ending six years of regulatory battles over the app's Chinese ownership. The agreement transfers 80.1% of TikTok's US operations to American and global investors while ByteDance retains a 19.9% stake, valuing TikTok's US business at $14 billion, according to multiple sources.
Oracle, Silver Lake, and Abu Dhabi-based MGX each acquired 15% of the new entity, TikTok USDS Joint Venture LLC. American and global investors control the remaining 30.1% through various investment firms including Dell Family Office and Alpha Wave Partners.
Former TikTok executive Adam Presser will lead the US venture as CEO. Presser previously served as TikTok's global head of operations, trust and safety. Will Farrell, TikTok's former global head of business operations protection, becomes chief security officer.
The deal requires Oracle to store US user data in American cloud infrastructure with third-party cybersecurity audits. TikTok's recommendation algorithm will be licensed from ByteDance then retrained using US user data.
Oracle will oversee data security while ByteDance maintains control over global product interoperability and commercial activities like advertising and e-commerce.
President Donald Trump welcomed the agreement on Truth Social, stating TikTok "will now be owned by a group of Great American Patriots and Investors, the Biggest in the World." Trump credited the platform with helping his 2024 re-election campaign and maintains over 16 million followers on his personal TikTok account.
The arrangement follows a 2024 law requiring ByteDance to divest TikTok's US operations over national security concerns. Trump chose not to enforce the law's January 2025 deadline, instead negotiating the joint venture structure after the Supreme Court upheld the divestment requirement in a unanimous 2025 decision.
The app briefly faced a US blackout in January 2025 before Trump halted enforcement to allow negotiations.
Congressional scrutiny continues despite the deal's completion. Representative Jack Moolenaar, Republican chair of the House Select Committee on China, called for oversight hearings, asking "Can we ensure that the algorithm is not influenced by the Chinese Communist Party?" in January 2026. Democratic Senator Ed Markey criticized the White House for providing "virtually no details about this agreement, including whether TikTok's algorithm is truly free of Chinese influence."
ByteDance reportedly earns around 50% of TikTok's US profits through the licensing arrangement while offloading data security responsibilities. The Chinese company maintains control over TikTok's core operations globally and retains ownership of the algorithm source code, with the joint venture structure resembling Project Texas, a 2022 data security initiative that failed to satisfy Biden administration concerns.
TikTok CEO Shou Chew will sit on the joint venture's seven-member board alongside ByteDance representatives. Chew continues leading TikTok's global operations outside the US venture. The Singapore-based executive faced congressional questioning about his nationality during 2024 hearings.
ByteDance posted approximately $50 billion in profit for 2025, rivaling Meta Platforms. Secondary market transactions valued the TikTok owner at up to $480 billion in late 2025.
The company adopted "Singapore-washing" strategies, relocating executives to buffer overseas operations from geopolitical tensions. Similar US-China tech tensions have affected other companies like Nvidia, whose H200 AI chip sales to China remain stalled amid ongoing US security reviews.
The deal concludes negotiations that began in August 2020 when Trump first sought to ban TikTok. Trump thanked Chinese President Xi Jinping for "working with us and, ultimately, approving the Deal" in his social media announcement.
TikTok continues to face regulatory challenges globally, including in Europe where EU regulators have accused the platform of addictive design and threatened billions in fines.
