TikTok reaches joint venture deal for US business

After years of controversy, multiple delays, legal challenges, and political pressure, TikTok has officially moved under new US ownership, marking a major shift for the popular video app.

President Donald Trump approved the arrangement, clearing the way for TikTok to continue operating in the US. The new ownership of the app ends years of uncertainty that user data could be accessed by the Chinese government.

Under the agreement announced on January 22, TikTok’s US operations will be transferred to a new entity, TikTok USDS Joint Venture LLC. 

Who controls TikTok now?
Silver Lake, Abu Dhabi’s MGX, and Oracle each hold 15% stakes, while ByteDance retains 19.9%, meeting national security requirements.

Adam Presser now leads the US company as CEO, with Oracle executive Will Farrell overseeing security, software audits, and algorithm safeguards. 

TikTok’s global CEO remains in place but joins the US board. ByteDance will have no access to US user data or control over the algorithm.

The company’s American business is valued at about $14 billion.

What this means for you?
For nearly 200 million American users, little will change immediately. The app will remain available; no new download is needed, and creators can continue as usual. 

TikTok US will run a separate algorithm trained on US data, aiming to reduce foreign influence. The platform will still show global content, but moderation and safety decisions will now be handled domestically.

Updated terms of service allow optional precise location tracking and expanded data collection tied to AI features. While TikTok says most policies remain unchanged, critics worry about privacy and political influence, especially with Oracle’s close ties to Trump.