TikTok Forms Majority-US Joint Venture to Avoid US Ban Over China Ownership

TikTok has announced the creation of a majority American-owned joint venture to run its US operations, in a bid to avoid a looming ban over concerns about its Chinese ownership.

The move comes after US lawmakers passed a law requiring Chinese-owned ByteDance to sell TikTok’s US business or face a shutdown in its largest market.

The newly formed TikTok USDS Joint Venture LLC will oversee services for more than 200 million users and 7.5 million businesses in the United States, while introducing stricter safeguards on data protection and content moderation.

ByteDance will retain a 19.9% stake in the venture, keeping ownership below the 20% limit set by the US law. Three investors—Silver Lake, Oracle, and Abu Dhabi’s AI investment fund MGX—will each hold 15% of the company. Oracle’s executive chairman, Larry Ellison, is a known ally of former US President Donald Trump.

TikTok has faced growing scrutiny over fears that user data could be accessed by the Chinese government. The platform had warned that it would “go dark” in the US unless lawmakers provided clear legal protections for service providers.

Former President Trump welcomed the deal, claiming credit for helping to secure it. He also thanked Chinese President Xi Jinping for approving the arrangement.

“I am so happy to have helped in saving TikTok!” Trump wrote on Truth Social, describing the new ownership as being in the hands of “Great American Patriots and Investors.”

The joint venture is expected to include further measures such as a cybersecurity audit and additional controls to reassure US authorities and users about data safety.