TikTok has finalized a landmark deal to create a new American entity, ending years of uncertainty about the popular video-sharing platform's future in the United States. The agreement, announced on January 23, 2026, establishes TikTok USDS Joint Venture LLC, marking a significant resolution to the prolonged regulatory standoff between Washington and Beijing over data security concerns.
Under the ownership structure, three managing investors will each hold 15 percent stakes: Oracle, Silver Lake, and Abu Dhabi-based MGX. ByteDance, TikTok's Chinese parent company, will retain a 19.9 percent ownership share, just below the 20 percent cap mandated by US law. Another 35 percent will be distributed among eight additional investors, including Dell CEO Michael Dell's personal investment office, Susquehanna International Group, and firms affiliated with Alpha Wave Partners, Revolution, Dragoneer, and General Atlantic.
Adam Presser, who previously served as head of operations and trust and safety at TikTok, has been appointed CEO of the new entity. The venture will be governed by a seven-member board of directors with an American majority, including TikTok CEO Shou Chew, Silver Lake co-CEO Egon Durban, Oracle Executive Vice President Kenneth Glueck, and MGX Chief Strategy and Safety Officer David Scott. Raul Fernandez, CEO of DXC Technology, will chair the Security Committee overseeing data protection measures.
The technical arrangements require the newly formed US entity to retrain TikTok's algorithm using data exclusively from American users, while Oracle will oversee the storage and security of all US user data within its cloud infrastructure. This framework addresses the core national security concerns that had prompted Congress to pass legislation potentially banning the app. The entity will maintain independent authority over content moderation policies for American users.
Both the United States and China have approved the deal, marking a rare moment of bilateral cooperation. President Donald Trump praised the agreement in a social media post, specifically thanking Chinese leader Xi Jinping for working with his administration to finalize the arrangement. The deal follows Trump's executive order signed on his first day in office to keep TikTok operational while negotiations proceeded.
The resolution has significant implications for TikTok's 170 million American users who faced the prospect of losing access to the platform. Industry analysts noted that the deal establishes a potential template for other Chinese technology companies operating in the United States, balancing national security requirements with commercial interests and consumer access.
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