TikTok and its Chinese owner ByteDance have finalized a deal to create a majority American-owned joint venture that will allow the short-video platform to continue operating in the United States after years of regulatory pressure.
The agreement establishes TikTok USDS Joint Venture LLC, a new entity designed to secure U.S. user data, technology and algorithms under American oversight.
The deal follows a prolonged standoff that intensified after a 2024 law required ByteDance to divest its U.S. assets or face a nationwide ban, a measure later upheld by the Supreme Court.
President Donald Trump, who delayed enforcement after returning to office, praised the agreement as a resolution to long-running national security concerns.
Under the terms disclosed, American and global investors will hold 80.1 percent of the new venture, while ByteDance will retain a 19.9 percent stake.
Three managing investors, Oracle, Silver Lake and Abu Dhabi-based MGX, will each hold 15 percent and oversee key operations.
The venture will operate TikTok’s U.S. app and manage user data, content moderation and the recommendation algorithm within defined cybersecurity safeguards.
TikTok said the algorithm will be retrained and tested on U.S. user data and secured in Oracle’s U.S.-based cloud infrastructure.
Adam Presser has been appointed chief executive officer of the venture, with Will Farrell serving as chief security officer, while TikTok CEO Shou Zi Chew will sit on the board.
A White House official said both the U.S. and Chinese governments had signed off on the arrangement.
The deal builds on disputes dating back to 2020, when U.S. authorities first sought to force TikTok to separate from ByteDance over fears of foreign influence and data access.
Lawmakers renewed those concerns in 2024, arguing that China could pressure ByteDance over sensitive U.S. user information and the app’s influential algorithm.
TikTok and Beijing have consistently denied such claims, even as China has insisted the algorithm remain under Chinese control.
Trump credited the platform with helping him connect with younger voters and said the agreement met the divestiture requirements of the 2024 law.
In a social media post, he said TikTok “will now be owned by a group of Great American Patriots and Investors, the Biggest in the World.”
The venture is expected to handle backend data and technology services, while separate ByteDance-owned units continue revenue-generating operations such as advertising and e-commerce.