TikTok Finalizes U.S. Spin-Off Deal, Establishes American-Owned Joint Venture
Written by b87fm on 01/23/2026
TikTok announced Thursday (Jan. 22) that it has officially finalized its long-awaited deal to spin off its U.S. operations into a new joint venture largely controlled by American investors, bringing closure to years of political and regulatory uncertainty surrounding the platform.
In a press release, the company confirmed the formation of TikTok USDS Joint Venture LLC, stating that the move complies with an executive order signed by President Donald Trump on Sept. 25, 2025.
“Today, TikTok USDS Joint Venture LLC has been established… enabling more than 200 million Americans and 7.5 million businesses to continue to discover, create, and thrive as part of TikTok’s vibrant global community,” the statement read. TikTok emphasized that the new entity is majority American-owned and will operate under strict safeguards designed to protect U.S. national security.
According to the company, the joint venture’s mandate includes securing U.S. user data, protecting the app and its algorithm through enhanced cybersecurity and privacy measures, and enforcing robust trust, safety, and content moderation policies. TikTok also pledged ongoing accountability through transparency reporting and third-party certifications.
The three managing investors in the deal are Oracle Corporation, private equity firm Silver Lake, and Abu Dhabi-based investment company MGX. Oracle, Silver Lake, and MGX will each hold a 15 percent ownership stake in the new entity. ByteDance, TikTok’s China-based parent company, will retain a 19.9 percent stake, while the remaining 30.1 percent will be held by affiliates of ByteDance’s existing investors.
The agreement effectively resolves the years-long standoff between TikTok and U.S. lawmakers, which intensified after Congress passed legislation requiring the app to be banned unless ByteDance divested its U.S. business to American ownership.
Oracle, co-founded by billionaire Larry Ellison, will play a central role in the venture. Ellison is Oracle’s largest shareholder, and his family also controls Paramount Global, which owns CBS. Paramount was recently linked to a reportedly unsuccessful hostile takeover attempt involving Warner Bros. Discovery.
With the deal now finalized, TikTok’s future in the U.S. appears secured—at least for now—under a structure designed to satisfy national security concerns while keeping the wildly popular platform online for millions of American users and businesses.
