Popular social media platform TikTok has announced that it has finalised a joint venture arrangement with a group of investors, a move aimed at securing the platform’s continued operation in the United States(US) amid long-standing concerns over its Chinese ownership.
In an internal message circulated to employees, TikTok’s Chief Executive Officer, Shou Chew, disclosed that the company and its parent firm, ByteDance, had agreed on the structure of a new U.S.-based entity.
The partnership includes prominent investors such as Oracle, private equity firm Silver Lake, and Abu Dhabi investment company MGX.
Under the proposed arrangement, the new US joint venture will take primary responsibility for safeguarding American user data, overseeing content moderation, ensuring software integrity, and protecting the platform’s algorithm.
Chew explained that the entity would also have sole authority to certify that data, software, and content used by US users meet national security standards.
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Ownership of the venture will be split among several parties. A consortium of new investors, including Oracle, Silver Lake, and MGX, will collectively hold half of the company, with each firm taking a 15 per cent stake.
Affiliates of ByteDance’s existing investors will control just over 30 per cent, while ByteDance itself will retain slightly less than 20 per cent — the highest level of ownership permitted for a Chinese company under US law.
According to the memo, TikTok’s US-based units will continue to handle certain global functions, such as product interoperability, as well as commercial activities including advertising, marketing, and e-commerce operations.
Chew added that while the agreement marks a major step forward, additional work remains ahead of the planned closing date of January 22.
The restructuring is a direct response to legislation passed during the administration of former President Joe Biden, which required ByteDance to divest TikTok’s US operations or face a nationwide ban.
Lawmakers from both major parties have repeatedly expressed fears that the Chinese government could exploit TikTok to access Americans’ personal data or influence public opinion through its recommendation algorithm.
Although former President Donald Trump initially supported restrictions on TikTok during his first term, he later delayed enforcement through a series of executive orders, extending deadlines into early 2026.
The joint venture broadly aligns with an earlier White House announcement in September, which stated that a framework had been agreed upon that satisfied the requirements of the 2024 law.
The deal also highlights the growing role of Oracle founder and executive chairman Larry Ellison, a longtime associate of Trump, who has been named as a key figure in the arrangement.
Ellison has recently re-emerged as a major power broker, collaborating with Trump on artificial intelligence initiatives and backing significant media acquisitions involving his son.
While ByteDance has yet to issue a public statement on the agreement, analysts believe the compromise has spared the company from losing access to one of its most valuable markets.
Li Chengdong, founder of Chinese technology consultancy Dolphin, described the outcome as a win, noting that preserving TikTok’s US operations is a significant achievement for ByteDance.
Li added that resolving the regulatory standoff could allow ByteDance to redirect its attention toward new growth areas, including artificial intelligence, and potentially revive plans for a future public listing.
However, Zhang Yi of research firm iiMedia cautioned that challenges may persist, warning that US regulators could still apply pressure on TikTok through future policy demands.
Despite the uncertainties ahead, the agreement marks a pivotal moment in TikTok’s efforts to navigate geopolitical tensions while maintaining its foothold in the United States.
