TikTok may have found a way to stay online in the US. The company announced late last week that it has set up a joint venture backed largely by US investors. TikTok announced TikTok USDS Joint Venture LLC on Friday in a deal valued at about $14 billion, allowing it to continue operating in the country.
This is the culmination of a long-running fight between TikTok and US authorities. In 2019, the Committee on Foreign Investment in the United States (CFIUS) flagged ByteDance’s 2017 acquisition of Musical.ly as a national security risk, on the basis that state links between the app’s Chinese owner would make put US users’ data at risk.
In his first term, President Trump issued an executive order demanding that ByteDance sell the business or face a ban. That was order was blocked by courts, and President Biden later replaced it with a broader review process in 2021.
In April 2024, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which Biden signed into law. That set a January 19, 2025 deadline for ByteDance to divest its business or face a nationwide ban. With no deal finalized, TikTok voluntarily went dark for about 12 hours on January 18, 2025. Trump later issued executive orders extending the deadline, culminating in a September 2025 agreement that led to the joint venture.
Three managing investors each hold 15% of the new business: database giant Oracle (which previously vied to acquire TikTok when ByteDance was first told to divest), technology-focused investment group Silver Lake, and the United Arab Emirates-backed AI (Artificial Intelligence) investment company MGX.
Other investors include the family office of tech entrepreneur Michael Dell, as well as Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, and Via Nova.
Original owner ByteDance retains 19.9% of the business, and according to an internal memo released before the deal was officially announced, 30% of the company will be owned by affiliates of existing ByteDance investors. That’s in spite of the fact that PAFACA mandated a complete severance of TikTok in the US from its Chinese ownership.
A focus on security
The company is eager to promote data security for its users. With that in mind, Oracle takes the role of “trusted security partner” for data protection and compliance auditing under the deal.
Oracle is also expected to store US user data in its cloud environment. The program will reportedly align with security frameworks including the National Institute of Standards and Technology (NIST) Cybersecurity Framework. Other TikTok-owned apps such as CapCut and Lemon8 will also fall under the joint venture’s security umbrella.
Canada’s TikTok tension
It’s been a busy month for ByteDance, with other developments north of the border. Last week, Canada’s Federal Court overturned a November 2024 governmental order to shut down TikTok’s Canadian business on national security grounds. The decision gives Industry Minister Mélanie Joly time to review the case.
Why this matters
TikTok’s new US joint venture lowers the risk of direct foreign access to American user data, but it doesn’t erase all of the concerns that put the app in regulators’ crosshairs in the first place. ByteDance still retains an economic stake, the recommendation algorithm remains largely opaque, and oversight depends on audits and enforcement rather than hard technical separation.
In other words, this deal reduces exposure, but it doesn’t make TikTok a risk-free platform. For users, that means the same common-sense rules still apply: be thoughtful about what you share and remember that regulatory approval isn’t the same as total data safety.
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