TikTok, the popular social media platform, has made a significant move to enhance its operations in the United States by transferring control to American investors. This decision follows a national security-driven joint venture agreement with its parent company, ByteDance, officially announced in a memo by CEO Shou Chew.
The joint venture is set to finalize on January 22, 2026, concluding a prolonged campaign by the U.S. government to force a sale of the app over security concerns. The newly formed investor group comprises tech giants like Oracle, private equity firm Silver Lake, and the AI-focused investment firm MGX based in Abu Dhabi. Together, these firms will hold a 45 percent stake in TikTok”s U.S. operations, while ByteDance retains a 20 percent share.
The agreement designates the U.S. joint venture as responsible for various critical aspects, including software assurance, algorithm security, content moderation, and the protection of U.S. user data. A key element of this agreement involves the retraining of TikTok”s content recommendation algorithm, ensuring that the content feed remains free from external interference.
With Oracle as a prominent security partner, this joint venture is expected to conduct regular audits to adhere to national security guidelines. The U.S. entity will also manage global product interoperability and key business activities such as e-commerce and advertising.
This strategic decision echoes sentiments from a previous executive order signed by former President Trump, which authorized the sale of TikTok”s U.S. business to an American investor consortium. Trump stated during a press briefing that he discussed the sale with Chinese President Xi Jinping and received approval. Vice President JD Vance has since estimated that TikTok U.S. could be valued at approximately $14 billion.
The move comes after the Committee on Foreign Investment in the United States (CFIUS) issued a divestment order back in August 2020, mandating ByteDance to either sell its U.S. operations or face a ban. The White House has noted that the newly established framework aligns economic interests with national security measures, limiting foreign access to sensitive data and systems.
According to a report from the White House, TikTok boasts around 170 million users in the United States. Despite the transition, ByteDance has not yet formally agreed to the terms of this joint venture or the presidential order.
This development marks a pivotal shift in the operational landscape of TikTok within the U.S., raising questions about data security and the future of the platform amid ongoing regulatory scrutiny.
