By Tian Jingxin
After years of political, legal, and regulatory disputes, TikTok’s future in the United States has finally been settled. TikTok’s Chinese parent company, ByteDance, announced Thursday that a key agreement has been officially completed. The deal establishes a joint venture majority-owned by U.S. investors, ensuring TikTok’s continued operation in the U.S. while meeting American government requirements on national security and data protection.
Earlier that day, former President Trump posted on his platform Truth Social, stating that he had helped TikTok continue operations in the U.S., noting the efforts made by U.S. investors and related consultations with the Chinese side. He also expressed appreciation for Chinese President Xi Jinping allowing the deal to proceed under the backdrop of U.S. national security review.
According to multiple media reports, the joint venture, named TikTok USDS Joint Venture LLC, has been formally established. Under the agreement, majority ownership of TikTok’s U.S. operations will transfer to U.S. and global investors, including Oracle, private equity firm Silver Lake, and Abu Dhabi’s MGX investment company. The ownership structure shows that U.S. and international investors collectively hold approximately 80.1 percent of shares, while ByteDance retains a 19.9 percent minority stake.
Core operations to be in the US
The new joint venture will manage TikTok’s core operations in the U.S., including U.S. user data storage, content moderation, algorithm security, and software safeguards. An official statement noted that U.S. user data will be stored on Oracle’s U.S.-based cloud infrastructure, and the platform also plans to localize its recommendation algorithms to further strengthen national security protections.
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The completion of this deal marks a new phase for TikTok in the U.S. after regulatory pressures since 2020. Due to national security concerns, U.S. lawmakers have repeatedly pushed for a complete ban on TikTok. In 2024, Congress passed legislation requiring ByteDance to divest TikTok’s U.S. assets, or the platform would face a nationwide ban. The U.S. Supreme Court later confirmed in related cases that the law is constitutional.
Meanwhile, the leadership of the new joint venture has been finalized. Former TikTok U.S. executive Adam Presser will serve as CEO, and Will Farrell, responsible for data security, will serve as Chief Security Officer. TikTok Global CEO Shou Zi Chew will join the board, continuing to participate in overall strategic direction.
However, while the agreement provides a longer-term operational path for TikTok in the U.S., criticism remains. Concerns focus on the deal’s transparency and whether the algorithms are truly free from Chinese influence. Democratic Senator Ed Markey publicly stated that Congress should investigate the agreement, criticizing the White House and relevant parties for not fully disclosing the transaction details—especially regarding algorithm control and data access, which he said had “almost no specifics.” He added that such a level of transparency “does not meet national security standards.”
As of now, neither the White House nor TikTok has provided an immediate response to these concerns. ByteDance reiterated in its statement that the newly established joint venture will implement more comprehensive data privacy and cybersecurity measures to protect U.S. user information.