After years of political wrangling, court disputes, and even a brief shutdown that left roughly 170 million Americans staring at blank screens, TikTok is finally undergoing a major U.S. transformation. The popular video-sharing platform has reached an agreement that reshapes its operations in the United States, bringing one of the most heated tech confrontations in recent memory closer to resolution.
TikTok CEO Shou Zi Chew recently informed staff that the company will establish a new U.S.-based entity, with the transition expected to be finalized by January 22, 2026. The move comes after prolonged pressure from American lawmakers, who have consistently raised concerns that TikTok’s parent company, China’s ByteDance, could pose national security and data privacy risks.
The new company, named TikTok USDS Joint Venture LLC, will oversee the app’s U.S. operations. While the ownership structure is intricate, the key outcome is straightforward: American investors will hold the majority, fulfilling last year’s congressional mandate requiring ByteDance to divest or risk a total U.S. ban.
Under the deal, Oracle, private equity firm Silver Lake, and Abu Dhabi’s MGX will each acquire a 15 percent stake, combining for 45 percent ownership. Another 30 percent will be allocated to affiliates of ByteDance’s current investors, while ByteDance itself will retain just under 20 percent. This structure ensures U.S. control while maintaining a link to the global parent company.
The path to this deal has been tumultuous. Earlier this year, the U.S. Supreme Court upheld the divest-or-ban legislation, briefly triggering a TikTok blackout in the country. Former President Donald Trump, who initially pushed for a sale of TikTok in 2020, returned to office in 2025 and temporarily delayed enforcement through executive orders while negotiations continued. A U.S.-China framework agreement reached in September ultimately paved the way for the current deal.
Importantly, the new joint venture will oversee the areas that had raised the most concern in Washington: data protection, content moderation, recommendation algorithms, and the app’s core software for U.S. users. Oracle, which already manages TikTok’s U.S. user data, will act as a trusted security partner, auditing systems to meet national security standards.
As part of the transition, TikTok’s recommendation engine for American users will be retrained exclusively on U.S. data, reducing foreign influence on content feeds. ByteDance will continue managing TikTok’s global operations—including advertising, e-commerce, and overall platform consistency—but the systems powering the U.S. version of the app will operate independently.
The U.S. business of TikTok is reportedly valued at roughly $14 billion, a figure cited publicly by Vice President JD Vance during negotiations. While China initially resisted, both governments eventually approved the framework, allowing the deal to move forward.
For everyday users, creators, and advertisers, TikTok promises that the experience will remain largely unchanged. The app will look and function as it always has, and it will remain part of the global TikTok community. The key difference is in ownership and oversight: after years of uncertainty, TikTok’s U.S. operations are set to continue—this time under American control.
