TikTok has received final approval for a new structure in the United States. The completion of TikTok USDS Joint Venture LLC brings an end to years of political uncertainty surrounding the future of the app in one of its most important markets.
This was reported by Reuters. The new joint venture is intended to prevent TikTok from being banned and places control over data, technology, and oversight largely in American hands.
The timing of the announcement is no coincidence. The deal was finalized just before a postponed deadline set by President Donald Trump at the end of last year. For TikTok, this means clarity for some 200 million US users and an estimated 7.5 million businesses that use the platform for marketing, sales, and community building.
ByteDance will remain involved, but from a distance. The Chinese parent company will retain a 19.9 percent stake, while more than 80 percent of the joint venture will be owned by American and international investors. Oracle, investment company Silver Lake, and Abu Dhabi-based MGX will jointly manage the venture. The investment vehicle of Dell founder Michael Dell and several other funds will also participate.
Control is further secured through the management structure. The joint venture will have a seven-member board of directors, the majority of whom are American. TikTok CEO Shou Chew will sit on the board but will not have a decisive vote. Day-to-day management will be handled by Adam Presser, who has been with TikTok for some time. Will Farrell will serve as chief security officer, with specific responsibility for privacy and data security.
Data and technology separated from China
Under this arrangement, TikTok’s US operations will be completely separated from the Chinese organization in terms of data and technology. The recommendation algorithm will be retrained and managed based on US user data and will run in Oracle’s US cloud environment. In this way, TikTok wants to demonstrate that sensitive data and critical technology remain out of the reach of foreign governments.
In addition to data, content policy will also be given a different place. TikTok USDS states that it will make independent decisions about moderation, trust and safety, and protecting the US content ecosystem. These powers are intended to prevent any doubts about possible influence on content or information provision.
Long road to compromise
The deal is the result of a long political process. Back in 2020, Trump attempted to ban TikTok via an emergency order. That attempt ultimately failed in court. In 2024, legislation was passed requiring ByteDance to divest its US operations, but that route also led to delays and renegotiation. In his second term, Trump opted for a more pragmatic approach, publicly stating that he wanted to find a solution that would allow TikTok to continue to exist in the US.
According to the White House, the new joint venture meets the requirements of the legislation. Both the US and Chinese governments have agreed to the arrangement, although Beijing has yet to provide an official explanation. Little has been disclosed about commercial details, such as the distribution of advertising revenue.