ByteDance Strikes Deal to Keep TikTok Online in U.S.
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ByteDance Ltd. and TikTok have signed agreements with three investors to form a U.S. joint venture, as the Chinese tech giant works to resolve America’s national security concerns and keep the short-video app operating in the country.
“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,” TikTok CEO Shou Zi Chew said in an internal memo on Thursday. The venture will oversee data protection, algorithm security, content moderation and software assurances related to the app’s U.S. operations.
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- ByteDance and TikTok formed a U.S. joint venture, TikTok USDS Joint Venture LLC, with Oracle, Silver Lake, and MGX as key investors, addressing U.S. national security concerns.
- The new entity will be majority-owned by U.S. investors, with ByteDance holding a 19.9% stake and sensitive user data stored by Oracle.
- The structure aligns with U.S. law limiting foreign control, while ByteDance retains algorithm IP, licensing it to the joint venture.
- ByteDance Ltd.
- ByteDance Ltd., a Chinese tech giant, has formed a U.S. joint venture called TikTok USDS Joint Venture LLC. This aims to resolve national security concerns and keep TikTok operating in the U.S. ByteDance will retain a 19.9% stake in the venture, satisfying the U.S. law on foreign adversary control. The company will also license its algorithm to the joint venture, complying with Chinese tech export restrictions.
- Oracle Corporation
- Oracle Corporation is one of three managing investors forming a new TikTok U.S. joint venture called TikTok USDS Joint Venture LLC. Oracle, a cloud computing giant, along with Silver Lake and MGX, will each hold a 15% stake in this new venture. Oracle will also manage the cloud environment where sensitive U.S. user data will be stored.
- Silver Lake
- Silver Lake is a private equity firm that, along with Oracle Corporation and MGX, will invest in a new U.S. joint venture called TikTok USDS Joint Venture LLC. This consortium of new investors will collectively hold 50% of the joint venture, with Silver Lake specifically taking a 15% stake. This move aims to address U.S. national security concerns regarding TikTok.
- MGX
- MGX is an investor involved in the formation of the TikTok USDS Joint Venture LLC. It is an Abu Dhabi sovereign wealth fund-backed entity. MGX will hold a 15% stake in the joint venture, which is designed to address U.S. national security concerns regarding TikTok's operations.
- March 2024：
- The Protecting Americans from Foreign Adversary Controlled Applications Act was passed.
- 2024：
- A law was passed threatening to ban TikTok unless it was sold.
- January 2025：
- TikTok was briefly shut down before President Donald Trump issued extensions during negotiations.
- By January 22, 2025：
- The TikTok U.S. joint venture deal is expected to close.
- September 2025：
- President Donald Trump approved the framework of the TikTok deal through an executive order.
- September 2025：
- Caixin reported the confirmed shareholding structure of the new TikTok U.S. joint venture.
- Thursday, December 18, 2025：
- TikTok CEO Shou Zi Chew announced in an internal memo the signing of binding agreements for the U.S. joint venture.
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