TikTok has reached a landmark agreement with Oracle, Silver Lake, and Abu Dhabi's MGX to establish TikTok USDS Joint Venture LLC, ensuring the app's continued operation for its 170 million American users. The deal, announced in an internal memo by CEO Shou Zi Chew on December 19, 2025, resolves regulatory uncertainties dating back to 2020.
The new entity will be 50% owned by the investor consortium, with each partner holding 15% stakes. Existing ByteDance investors will retain 30.1%, while ByteDance itself keeps 19.9%. A seven-member majority-American board will oversee U.S. data security, algorithm retraining, and content moderation – key concerns for policymakers.
Chew emphasized the agreement enables TikTok to maintain its global community while implementing enhanced safeguards: "Our focus remains on delivering for users while meeting evolving security expectations." The venture is scheduled to finalize operations by January 22, 2026.
This restructuring creates separate frameworks for U.S. data management and global commercial activities, potentially setting a precedent for multinational tech platforms balancing national security concerns with cross-border digital services.
