TikTok has moved closer to securing its future in the United States by signing binding agreements with Oracle, Silver Lake and Abu Dhabi-based MGX to form a new U.S. joint venture, according to an internal memo from CEO Shou Zi Chew on Thursday.
The new company, TikTok USDS Joint Venture LLC, will be 50% owned by a consortium of American investors—Oracle, Silver Lake and MGX—each holding a 15% stake. Affiliates of existing ByteDance investors will own 30.1%, while ByteDance retains 19.9%.
Chew highlighted that the structure will ensure data protection and national security for American users. The joint venture will be governed by a majority-American board of seven directors and will oversee U.S. data protection, algorithm security, content moderation and software assurance.
TikTok global's U.S. entities will continue to handle global product interoperability and commercial activities such as e-commerce, advertising and marketing.
In the memo, TikTok said the deal will allow "over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community." Chew added, "With these agreements in place, our focus must stay where it's always been: firmly on delivering for our users, creators, businesses and the global TikTok community."
After years of uncertainty since August 2020 with the first attempt to ban the app, the deal marks a major milestone. The transaction is set to close on January 22, 2026, and paves the way for TikTok to thrive in the U.S. market.
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TikTok signs deal to form new U.S. joint venture, internal memo says
cgtn.com
