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TikTok said Thursday it has established a majority American-owned joint venture to operate its U.S. business, allowing the company to avoid a ban tied to concerns over its Chinese ownership.
The new entity, TikTok USDS Joint Venture LLC, will serve more than 200 million users and 7.5 million businesses in the United States while implementing strict safeguards for data protection, algorithm security and content moderation, the company said.
The move addresses a law passed under former President Joe Biden that required Chinese-owned ByteDance to divest TikTok’s U.S. operations or face a ban in its largest market.
Under the arrangement, ByteDance will retain a 19.9% stake in the joint venture, keeping its ownership below the 20% threshold set by the law.
Three investors—Silver Lake, Oracle and Abu Dhabi-based artificial intelligence investment fund MGX—will each hold 15% stakes. Oracle executive chairman Larry Ellison is a longtime ally of President Donald Trump.
Other investors include the Dell Family Office, affiliates of Susquehanna International Group and General Atlantic, along with several other investment firms.
President Donald Trump welcomed the agreement and claimed credit for its completion, while also thanking Chinese President Xi Jinping.
“I am so happy to have helped in saving TikTok!” Trump said in a post on Truth Social late Thursday. “It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice.”
“I would also like to thank President Xi, of China, for working with us and, ultimately, approving the deal,” he added.
The joint venture will retain decision-making authority over trust and safety policies and content moderation for U.S. users, while TikTok’s global entities will continue to manage international product integration and commercial activities, including e-commerce and advertising.
TikTok said U.S. user data will be stored in Oracle’s secure cloud infrastructure, with cybersecurity reviewed by independent third-party auditors and aligned with federal standards.
The company said the joint venture will be overseen by a seven-member board with a majority of American members, including TikTok CEO Shou Chew and executives from major investment firms.
TikTok executive Adam Presser was appointed chief executive officer of the new entity, while Will Farrell will serve as chief security officer.
The 2024 law followed years of warnings by U.S. policymakers—including Trump during his first presidency—that China could use TikTok to collect Americans’ data or influence public opinion through its algorithm.
Trump later credited the platform with helping him connect with younger voters and delayed enforcement of the law through a series of executive orders, most recently extending the deadline to Jan. 22.
The deal largely confirms an outline that Chew shared with employees last month.
In September, Vice President J.D. Vance, a former venture capitalist, said the U.S. entity would be valued at about $14 billion, though final pricing would be determined by investors.
That same month, Trump said an agreement with China had been reached that would comply with the law and specifically cited Ellison as a key figure in the deal.
Ellison has drawn renewed attention through his ties to Trump, including participation in major artificial intelligence partnerships with OpenAI. He has also financed his son David Ellison’s takeover of Paramount and a bidding contest with Netflix for Warner Bros.
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