TikTok is nearly to the finish line in the video app’s long trek to becoming legal in the U.S.
ByteDance and TikTok have signed “binding agreements” with three managing investors: Oracle Corporation, Silver Lake and Abu Dhabi-based MGX, to form a new TikTok U.S. joint venture named TikTok USDS Joint Venture LLC, according to a memo to TikTok staff by CEO Shou Zi Chew reviewed by Variety. The agreement forming the TikTok U.S. joint venture is set to close Jan. 22, 2026.
The agreements specify that the U.S. joint venture will be majority-owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and U.S. national security.
The TikTok U.S. joint venture will be 50% held by a consortium of new investors, including Oracle, Silver Lake and MGX with 15% each; 30.1% held by affiliates of certain existing investors of ByteDance; and 19.9% will be retained by ByteDance.
With the deal, ByteDance will come into compliance with the U.S.’s TikTok divest-or-ban law, which prohibits distribution in the U.S. of any app that is more than 20% owned by a “foreign adversary” (in this case, China). The law, which had overwhelming bipartisan support among U.S. lawmakers, went into effect Jan. 19, 2025. However, President Trump has issued multiple executive orders this year that delayed enforcement of the ban by the Justice Department while the administration tried to broke a deal to transfer ownership to U.S.-based investors.
“I want to take this opportunity to thank you for your continued dedication and tireless work,” Chew wrote in the memo. “Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world. 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.”
Read the full memo from Shou:
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Update on our U.S. business
I am pleased to share some great news. We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.
I want to take this opportunity to thank you for your continued dedication and tireless work. Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world.
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.
There’s more work to be done as we move towards the closing date of January 22, 2026. Within this timeframe, we will continue to update you on the process and other details.
In the meantime, I have outlined key terms of the agreements below.
Shou
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ByteDance and TikTok have signed binding agreements with three managing investors, Oracle Corporation, Silver Lake, and MGX, to form a new TikTok U.S. joint venture named TikTok USDS Joint Venture LLC. Pursuant to the Executive Order signed by U.S. President Donald J. Trump on September 25, 2025, the agreements specify that the U.S. joint venture will be majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and U.S. national security.
Specifically, the U.S. joint venture will be 50% held by a consortium of new investors, including Oracle, Silver Lake and MGX with 15% each; 30.1% held by affiliates of certain existing investors of ByteDance; and 19.9% will be retained by ByteDance.
Through comprehensive security measures, more than 170 million Americans will continue to discover, create, and connect on the platform, enjoying the same experience as today. Advertisers will continue to connect with global audiences with no impact.
The U.S. joint venture will be responsible for U.S. data protection, algorithm security, content moderation, and software assurance. It will also have the exclusive right and authority to provide assurances that content, software, and data for American users is secure. A trusted security partner will be responsible for auditing and validating compliance with the agreed upon National Security Terms, and Oracle will be the trusted security partner upon completion of the transaction.
The U.S. joint venture will oversee:
Data Protection: safeguarding sensitive U.S. user data, which will be stored in a trusted and secure cloud environment in the United States run by Oracle.
Algorithm Security: retraining the content recommendation algorithm on U.S. user data to ensure the content feed is free from outside manipulation.
Content Moderation: ultimate decision-making authority for reviewing and approving all content moderation and related policies within the United States.
Software Assurance: deployment and integrity of the U.S. application software and platform.
The transaction will be completed no later than 120 days from the date of the Executive Order. Upon the closing, the U.S. joint venture, built on the foundation of the current TikTok U.S. Data Security (USDS) organization, will operate as an independent entity with authority over U.S. data protection, algorithm security, content moderation and software assurance, while TikTok global’s U.S. entities will manage global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing.
From Variety US