TikTok’s US ownership deal marks a major turning point for the popular video-sharing platform, allowing it to continue operating in the United States after months of legal and political uncertainty. By finalizing an agreement to sell a sufficient stake in its US operations, TikTok has moved closer to complying with America’s divest-or-ban law, easing fears of a complete shutdown for its 170 million US users.
The agreement, confirmed by TikTok CEO Shou Zi Chew in an internal memo, is expected to close by January 22, 2026. It follows extended negotiations between TikTok’s parent company ByteDance, US regulators, and potential American investors. The deal aims to address national security concerns while preserving TikTok’s core services and user experience in the country.
A New Structure for TikTok in the US
Central to the US ownership deal is the creation of a new entity called TikTok USDS Joint Venture LLC. This joint venture will oversee TikTok’s US operations and is designed to ensure greater American control over sensitive aspects of the platform.
Under the agreed structure, 50% of the joint venture will be owned by a consortium of new American investors. This group includes Oracle, Silver Lake, and MGX, each holding a 15% stake. Existing ByteDance investors, through their affiliates, will own 30.1%, while ByteDance itself will retain a 19.9% stake. This ownership breakdown keeps ByteDance below the threshold that previously triggered regulatory concerns.
Why the Deal Matters
TikTok briefly went offline in the US earlier this year after missing earlier divestment deadlines. While temporary extensions granted by President Donald Trump kept the app running, uncertainty remained high for users, creators, and advertisers alike.
The finalized US ownership deal is intended to satisfy the requirements outlined in an executive order signed in September 2025. It also aligns with a broader framework agreement reached between the US and China, signaling a rare moment of cooperation on a sensitive technology issue.
For TikTok, the agreement offers stability. For US regulators, it provides stronger assurances around data security and platform governance.
Control Over Data and Algorithms
One of the most critical aspects of the US ownership deal is how TikTok will handle user data and content algorithms going forward. The new joint venture will operate with a seven-member board of directors, the majority of whom will be American citizens.
This board will have authority over data protection, algorithm security, content moderation, and software assurance for US users. TikTok has also committed to retraining its recommendation algorithm using only US user data, a move aimed at preventing any external influence over what American users see on the platform.
Sensitive US user data will be stored entirely within the United States in a secure cloud environment operated by Oracle. Oracle will also act as TikTok’s trusted security partner, responsible for auditing systems and validating compliance with US national security requirements.
What Changes for Users and Advertisers?
Despite the complex restructuring behind the scenes, TikTok says everyday users will notice little to no difference. The app’s features, interface, and content discovery experience are expected to remain the same.
Advertisers are also unlikely to see disruptions. TikTok’s global teams will continue handling certain commercial activities such as advertising, marketing, and e-commerce integration. According to the company, the US ownership deal is designed to protect business continuity while meeting regulatory demands.
Independence After Closing
Once the transaction is finalized, TikTok USDS Joint Venture LLC will function as an independent entity built on the platform’s existing US Data Security organization. It will have exclusive authority to certify that US user data, content systems, and software are secure.
This separation is meant to draw a clear line between TikTok’s US operations and its global parent company, addressing long-standing concerns raised by lawmakers and security officials.
A Precedent for Global Tech Firms
The TikTok US ownership deal could set a precedent for other global tech companies operating in highly regulated markets. As governments worldwide increase scrutiny over data sovereignty and platform influence, similar arrangements may become more common.
For now, TikTok has achieved something critical: time and clarity. By restructuring ownership and governance, the company has secured a path forward in one of its largest and most important markets.
The finalized TikTok US ownership deal represents a compromise between regulatory pressure and business reality. It allows TikTok to remain active in the United States while giving American authorities greater oversight of data, algorithms, and governance. While challenges may still lie ahead, the agreement offers a more stable future for the platform, its creators, and millions of US users who rely on it every day.
