TikTok establishes joint venture to end US ban threat

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TikTok establishes joint venture to end US ban threat / Photo: Patrick T. Fallon - AFP/File

TikTok establishes joint venture to end US ban threat

CULTURE 23.01.2026

TikTok announced Thursday it has established a majority American-owned joint venture to operate its US business, allowing the company to avoid a ban over its Chinese ownership.

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The TikTok USDS Joint Venture LLC will serve more than 200 million users and 7.5 million businesses while implementing strict safeguards for data protection, algorithm security and content moderation, the company said.

The new structure responds to a law passed under President Donald Trump's predecessor, Joe Biden, that forced Chinese-owned ByteDance to sell TikTok's US operations or face a ban in its biggest market.

ByteDance retains a 19.9 percent stake in the joint venture -- keeping its ownership below the 20 percent threshold stipulated by the law.

Three investors -- Silver Lake, Oracle and Abu Dhabi-based AI investment fund MGX -- each hold 15 percent stakes. Oracle's executive chairman Larry Ellison is a longtime Trump ally.

Other investors include Dell Family Office, affiliates of Susquehanna International Group and General Atlantic, and several other investment firms.

The joint venture will retain decision-making authority over trust and safety policies and content moderation for US users, while TikTok's global entities will manage international product integration and commercial activities including e-commerce and advertising.

Under the arrangement, US user data will be stored in Oracle's secure cloud environment, with cybersecurity audited by third-party experts and adhering to federal standards, TikTok said.

The joint venture will be governed by a seven-member, majority-American board including TikTok CEO Shou Chew and executives from major investment firms.

TikTok executive Adam Presser was appointed CEO of the new entity, with Will Farrell serving as chief security officer.

The 2024 law came as US policymakers, including Trump in his first presidency, warned that China could use TikTok to mine Americans' data or exert influence through its algorithm.

But Trump, crediting the app for his appeal with young voters, delayed enforcement through successive executive orders, most recently extending the deadline to January 22.

The deal largely confirms an outline announced to staff by Chew last month.

Trump said in September that a new venture had been agreed with China and would meet the law's requirements.

Trump specifically named Ellison, one of the world's richest men, as a major player in the arrangement.

Ellison has returned to the spotlight through his dealings with Trump, who has brought his old friend into major AI partnerships with OpenAI.

Ellison has also financed his son David's recent takeover of Paramount and bidding war with Netflix for Warner Bros.

A.F.Rosado--PC

Portugal Colonial - TikTok establishes joint venture to end US ban threat

TikTok establishes joint venture to end US ban threat

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