TikTok’s New U.S. Venture: What Happened and Why It Matters

ByteDance has signed binding agreements to create a new U.S. company for TikTok called TikTok USDS Joint Venture LLC. The investor group is led by Oracle and includes Silver Lake and MGX, and the new venture will be majority owned by American investors. Each managing investor will hold about 15 percent, affiliates of existing ByteDance investors will hold 30.1 percent, and ByteDance will keep a 19.9 percent stake.

The arrangement has been designed to comply with the Protecting Americans from Foreign Adversary Controlled Applications Act, and it was negotiated with White House officials. U.S. user data will be stored in Oracle’s cloud and the recommendation algorithm will be retrained using U.S. data to prevent foreign influence. Although Chinese regulatory approval is still pending, the parties have said the transaction is expected to close on January 22, 2026. The new venture will be governed by a seven-member majority‑American board. The U.S. business is valued at about $14 billion, and therefore the agreement may change how advertisers reach American users. The deal aims to avoid a U.S. ban that was authorized by legislation and it follows earlier executive orders that delayed enforcement.