Hong Kong, 23 January 2026 — TikTok and its Chinese parent ByteDance have confirmed they have formed a new U.S. joint venture that will take over parts of TikTok’s American business, effectively averting a shutdown of the app in the United States just hours before a potential ban was to take effect.
The new entity, named TikTok USDS Joint Venture LLC, transfers operational control of the U.S. business to a consortium of mostly American and global investors, removing the threat of a nationwide suspension after years of legal and political pressure tied to national security concerns.
Majority American Ownership and Structure
Under the arrangement, the new U.S. venture will be majority-owned (80.1 %) by non-Chinese investors, including major technology and investment groups such as Oracle, Silver Lake and MGX. ByteDance retains a 19.9 % minority stake, a structure intended to satisfy the requirements of U.S. law while keeping TikTok operational for its tens of millions of American users.
The joint venture’s governance and data security measures are designed to address long-standing concerns from U.S. policymakers about Chinese influence and access to U.S. user data. Key elements of the setup include U.S. oversight of user data storage, algorithm security and content moderation, with cloud infrastructure and security assurances managed under strict protocols.
National Security and Regulatory Context
The deal comes after years of regulatory scrutiny in the United States over TikTok’s ties to China and potential national security risks relating to data privacy. A 2024 U.S. law required TikTok to divest its American operations or face a ban, and after brief service interruptions in early 2025, negotiations continued through the year to secure a compliant structure.
By finalising the joint venture, TikTok will continue operating in the U.S. while restructuring ownership and operational controls to comply with the legal and bipartisan concerns that have driven legislative efforts to restrict the app.
Market and User Impact
The move preserves access for the platform’s large American user base, estimated at over 170 million people, and provides continuity for advertisers and creators who rely on TikTok as a major digital channel. Analysts say the deal may also chart a new path for other global tech firms navigating geopolitical scrutiny and data security regulations in major markets.
