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Posted January 23, 2026 at 11:45 am
TikTok has secured its future in the U.S. after its Chinese parent ByteDance finalized a deal creating a majority American-owned joint venture designed to address national security concerns and comply with U.S. law.
On Thursday, ByteDance said it has completed an agreement establishing TikTok USDS Joint Venture LLC.
It is a new entity that will oversee U.S. user data, the app and its recommendation algorithm, effectively averting a nationwide ban of the short-video platform used by more than 200 million Americans.
The move follows years of scrutiny that began in 2020, when President Donald Trump sought to ban TikTok over national security risks tied to its Chinese ownership.
A 2024 law later required ByteDance to divest TikTok’s U.S. assets or face a ban, a measure upheld by the Supreme Court.
Under the deal, American and global investors will own 80.1% of the venture, while ByteDance will retain a 19.9% minority stake.
Oracle Corp. (NYSE:ORCL), Silver Lake and Abu Dhabi-based MGX will each hold 15% and serve as managing investors.
TikTok said U.S. user data and the recommendation algorithm will be secured in Oracle’s U.S.-based cloud, with new privacy and cybersecurity safeguards in place.
The venture will retrain and test the algorithm using only U.S. user data.
Trump welcomed the agreement in a Truth Social post, saying, “I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors.”
He also thanked Chinese President Xi Jinping for approving the deal.
Price Action:Â Oracle shares closed up 2.47% at $178.18 on Thursday and rose another 0.32% to $178.76 in after-hours trading, according to Benzinga Pro.
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Originally Poted January 23, 2026 – TikTok Avoids US Ban As ByteDance Seals Majority American-Owned Venture Backed By Oracle, Silver Lake, MGX: ‘Happy To Have Helped,’ Says Trump
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