TikTok has finalised a deal to establish a majority American-owned joint venture to operate its US business, drawing in private equity and institutional investors as the platform moves to avoid a nationwide ban.

Under the agreement, American and global investors will own 80.1% of TikTok USDS Joint Venture LLC, while ByteDance will retain a 19.9% stake. Oracle, private equity firm Silver Lake, and Abu Dhabi investment group MGX will each hold 15%.

The new venture will be responsible for securing US user data, applications, and recommendation algorithms. These will be hosted in Oracle’s US cloud under enhanced cybersecurity and data-privacy controls.

The deal follows years of political scrutiny over TikTok’s Chinese ownership. A US law passed in 2024 required ByteDance to divest its US assets or face a ban, a measure upheld by the Supreme Court. The White House confirmed that both US and Chinese authorities have approved the agreement.

The structure allows ByteDance to retain an economic interest while ceding operational control of sensitive data to a US-based entity.

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