TikTok and its Chinese parent company ByteDance have signed binding agreements to transfer control of the video‑sharing app’s U.S. operations to a new, predominantly American‑owned joint venture, according to multiple news reports. 

New Ownership Structure and Closing Timeline

The newly established entity, named TikTok USDS Joint Venture LLC, is expected to close on January 22, 2026, marking a major development in a long‑running effort to ensure TikTok can continue operating in the United States without interruption. 

Under the agreement:

  • A consortium of investors, Oracle Corporation, Silver Lake, and Emirati‑based MGX, will collectively own about 45–50% of the new U.S. company, with each holding approximately 15%.
  • Affiliates of existing ByteDance investors will hold roughly 30.1%.
  • ByteDance will retain a 19.9% minority stake in the U.S. unit.

The joint venture will install a seven‑member board with a majority of American directors, reflecting the predominantly U.S. ownership and governance. 

Addressing National Security Concerns

A central focus of the transaction is to address longstanding U.S. national security concerns related to foreign influence and data privacy. To that end:

  • U.S. user data will be stored locally and managed under U.S. oversight, with Oracle designated to host and secure the data infrastructure.
  • The platform’s recommendation algorithm will be retrained using U.S. user data to reduce potential foreign influence and ensure localized control of content feeds.
  • The U.S. joint venture will have authority over data protection, content moderation, and software assurance. 

Regulatory Background and Legislative Context

The move follows years of U.S. regulatory scrutiny focused on TikTok’s Chinese ownership and its implications for data security. A 2024 federal law required ByteDance to divest TikTok’s U.S. assets to American owners or face a ban. Enforcement deadlines were delayed multiple times to facilitate negotiations and a divestiture plan. 

The signed deal represents a significant attempt to bring TikTok into compliance with divestment requirements and avert a nationwide ban that could have disrupted service for millions of users. 

Reactions and Path Forward

While the deal navigates past years of uncertainty, the transaction still requires regulatory approvals in both the United States and China before it can be finalized. As of now, Chinese regulators have not publicly confirmed approval.

TikTok’s leadership has framed the agreement as a way to secure the app’s future for users, creators, and advertisers in the U.S. market, where the platform is used by more than 170 million people.

What This Means for TikTok’s Future

If successfully completed, the joint venture will shift operational control of TikTok’s U.S. business to a structure that meets federal security requirements while allowing the company to maintain a presence in the world’s largest online advertising market.