Washington, DC – Chinese company ByteDance has officially announced binding agreements with an investment consortium led by US and international companies to operate the US version of TikTok. This move marks the end of years of legal and political disputes and averts a looming ban that threatened the app, which is used by more than 170 million Americans.
The new ownership structure: Goodbye to Chinese control
Under the agreement, a new entity called “TikTok USDS Joint Venture LLC” will be established. The shares will be distributed as follows:
80.1% to international investors. The consortium includes Oracle, Silver Lake, and Abu Dhabi-based MGX. This trio alone owns 45% of the shares.
19.9% to ByteDance: The Chinese parent company will retain only a minority stake. This ends its managerial and technical control over operations within the United States.
Ending the uncertainty
This agreement comes ahead of the deadline set by President Donald Trump (January 20, 2026). The agreement complies with the requirements of the 2024 US law regarding the transfer of ownership.
TikTok CEO Xu Zhu stated in an internal memo that the new joint venture will operate as a completely independent entity. It will have “full authority” over the protection of US user data. It will also be responsible for the security of its algorithms and source code, content moderation, and ensuring the integrity of its software.
The future of global operations
Despite the US version’s independence, Xu Zi Zhu explained that TikTok Global’s US subsidiaries will continue to manage certain global business activities. These include marketing, advertising, and e-commerce. The goal is to ensure continued innovation for the app’s global community.
A milestone in the history of technology
This deal, scheduled to be officially finalized on January 22, 2026, is considered a diplomatic and economic victory for the Trump administration. Since August 2020, the administration has been pressuring the Chinese company to divest its US assets, citing “national security” concerns. The agreement ensures the app’s continued viability for millions of creators and users in the United States.
