ByteDance sets up US JV to avoid American ban
Published January 23, 2026
ByteDance, the Chinese owner of TikTok, announced on Thursday that it has finalized an agreement to establish a majority American-owned joint venture. This venture is intended to secure U.S. data, thereby addressing concerns that could have led to a ban of the short video app, which is used by over 200 million Americans, according to Reuters.
This agreement represents a significant development for the social media company following several years of regulatory challenges. These began in August 2020 when then-President Donald Trump sought to ban the app on national security grounds. President Trump later chose not to enforce a law, passed in April 2024, which had required ByteDance to divest its U.S. assets by the following January or face a prohibition—a measure that was upheld by the Supreme Court.
ByteDance stated that the newly formed entity, TikTok USDS Joint Venture LLC, will secure U.S. user data, applications, and algorithms through enhanced data privacy and cybersecurity measures. The company provided limited specifics regarding the divestiture structure.
In a social media post, former President Trump commended the deal, stating that TikTok “will now be owned by a group of Great American Patriots and Investors, the Biggest in the World.” He also expressed gratitude to Chinese President Xi Jinping “for working with us and, ultimately, approving the Deal.”
The joint venture’s ownership structure allocates 80.1% to American and global investors, with ByteDance retaining a 19.9% stake. Three managing investors—Oracle, Silver Lake, and the Abu Dhabi-based MGX—will each hold 15% of the venture.
A White House official confirmed to Reuters that both the U.S. and Chinese governments had approved the arrangement. The Chinese Embassy in Washington did not provide an immediate comment.
Last year, President Trump indicated that this deal satisfied the divestiture requirements outlined in the 2024 law. The White House noted in September that the venture would be responsible for operating TikTok’s U.S. application. Certain details, such as the precise business relationships between the venture and ByteDance, have not yet been publicly disclosed.
The President maintains a personal TikTok account with over 16 million followers and has attributed the app with assisting his reelection campaign. A document from TikTok, dated December 22 and highlighted in a New York Times photo this month, detailed his popularity on the platform. The White House also established an official TikTok account in August.
Additional investors in the venture include the Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital.
Former TikTok USDS executives Adam Presser and Will Farrell have been appointed as CEO and Chief Security Officer of the venture, respectively. TikTok’s global CEO, Shou Chew, has been named to the venture’s board of directors.
According to TikTok, the venture will retrain, test, and update the app’s content recommendation algorithm using U.S. user data. This algorithm will be secured within Oracle’s U.S. cloud infrastructure.
Reporting by Reuters in September, citing sources, indicated that ByteDance would retain ownership of TikTok’s U.S. business operations but would transfer control of the app’s data, content, and algorithm to the joint venture. Sources explained that the venture would manage backend operations, U.S. user data, and the algorithm, while a separate, wholly-owned ByteDance division would oversee revenue-generating functions such as e-commerce and advertising. These sources added that the new venture would receive a portion of revenue in exchange for its technology and data services.
