- TikTok has formed a new joint venture largely owned by American investors
- The move secures the app’s future in the United States
- User data, systems, and algorithms will now be protected under US oversight
- The deal ends years of political pressure and legal threats
TikTok has taken a major step to safeguard its presence in the United States by creating a new company that is mostly owned by American investors. The move is aimed at ending long-running fears over the app’s Chinese links and avoiding a complete shutdown.
The new entity, known as TikTok USDS Joint Venture LLC, will handle all US-based operations of the short video platform.
Under the agreement, American and international investors will control 80.1 per cent of the joint venture. ByteDance, TikTok’s China-based parent company, will retain a minority stake of 19.9 per cent.
Leading the investment group are Oracle, Silver Lake, and Abu Dhabi-backed MGX. Each of the three firms holds a 15 per cent share. Other backers include Dell Family Office, Susquehanna-linked firms, and General Atlantic.
ByteDance said the new setup will protect more than 200 million users and about 7.5 million businesses in the US. User data, software systems, and recommendation tools will be handled under strict privacy and security controls.
This structure is meant to assure US authorities that sensitive information is no longer exposed to foreign influence.
TikTok’s troubles in the US date back to 2020 when then-President Donald Trump first raised national security concerns. Lawmakers accused the app of possibly sharing American user data with China.
There were also claims that TikTok’s system could be used to push political messages or misleading content without users choosing to see it.
In 2024, the Biden administration passed a law that would block new TikTok downloads from major app stores unless ByteDance sold the platform by January 2025.
However, after returning to the office, Trump delayed the ban several times through executive action, giving the company more time to find a solution.
Trump welcomed the final agreement and said he played a key role in saving the app. In a post shared online, he praised the new ownership and described it as a win for American investors.
He also thanked Chinese President Xi Jinping for approving the arrangement.
The new joint venture brings to a close years of tension between Washington and Beijing over TikTok. With US investors now in charge, the platform appears set to continue operating without interruption.
For millions of users and businesses, the deal offers relief and stability after years of uncertainty.
