The long-awaited deal to secure TikTok’s operations in the United States has finally closed, establishing a joint venture that transfers control of the app’s U.S. assets to American investors while allowing ByteDance to retain a minority stake. This ensures the platform remains available to over 200 million American users, addressing years of national security concerns and regulatory uncertainty.
The deal was finalized on January 22-23, 2026, with the formation of the TikTok USDS Joint Venture LLC, as announced by the company. Key investors include tech firm Oracle, private equity firm Silver Lake, and Emirati investment firm MGX, who will collectively hold a significant portion of the new entity. ByteDance, the Chinese parent company, will retain approximately 19.9% ownership, with the remaining 80.1% controlled by non-Chinese entities, primarily U.S.-based groups, according to statements from both TikTok and the investor consortium.
For the app’s vast user base in the U.S., the closure of the deal means that TikTok will continue to operate without requiring users to download a new application. However, the algorithm that curates video feeds may be retrained on U.S. user data managed by Oracle, which could lead to subtle changes in content personalization over time. Despite this, the overall user experience is expected to remain largely consistent, with the new joint venture overseeing data protection, algorithm security, and content moderation for American users, as highlighted in reports from multiple news outlets.
This resolution comes after years of regulatory pressure and legal battles. The saga began in 2020 when then-President Donald Trump issued executive orders seeking to ban TikTok over data privacy fears linked to Chinese ownership. In 2024, President Joe Biden signed a law requiring ByteDance to divest its U.S. operations or face a ban, leading to prolonged negotiations and court challenges. Trump, upon returning to office, repeatedly delayed enforcement to facilitate a deal, culminating in the recent agreement that meets the January 23 deadline set by his administration.
National security concerns were central to the dispute, with U.S. officials worrying that ByteDance could be compelled by the Chinese government to manipulate TikTok’s algorithm to influence American users or access sensitive data. The new structure aims to mitigate these risks by placing U.S. user data and algorithm control under American oversight, with Oracle serving as the trusted security partner to audit compliance with national security terms, though some lawmakers question whether Chinese influence is fully eliminated.
Politically, the deal has involved high-level diplomacy, with Trump thanking Chinese President Xi Jinping for his approval in a Truth Social post. However, it has faced scrutiny from legislators, including Democratic Senator Ed Markey, who has raised concerns about the transparency of the agreement and whether it sufficiently protects national security while keeping TikTok online. Bipartisan unease persists, reflecting broader tensions in U.S.-China tech relations and the balance between security and digital innovation.
Looking ahead, the joint venture will need to navigate these challenges while maintaining TikTok’s popularity in the U.S. market, where it serves as a key platform for entertainment, news, and livelihood for creators. The deal sets a precedent for how tech platforms with foreign ties can operate in the U.S., potentially influencing future regulations on data privacy and algorithm governance. For now, American users can expect continued access to TikTok, but the story underscores the complex interplay between technology, politics, and security in an increasingly interconnected world.
