TikTok’s Chinese parent company, ByteDance, has signed binding agreements to create a new joint venture that will take control of TikTok’s U.S. operations, marking a major step toward avoiding a nationwide ban in the United States.
Under the agreement, a newly formed entity called TikTok USDS Joint Venture LLC will be controlled primarily by American and global investors. Companies including Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively hold 80.1% ownership, while ByteDance will retain a 19.9% minority stake. The new U.S. company is expected to be valued at around $14 billion, according to earlier statements by Vice President JD Vance.
TikTok CEO Shou Zi Chew told employees that the joint venture will operate as an independent company with authority over U.S. user data protection, algorithm security, content moderation, and software assurance.
Meanwhile, ByteDance’s global TikTok entities will continue handling international product compatibility and certain commercial activities such as advertising and e-commerce, separate from the U.S. operation.
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