TikTok has taken a major step to protect its future in the United States by signing agreements to create a new U.S. joint venture with American and international investors. The move comes after years of political and legal pressure over national security concerns about the app’s Chinese ownership and its large user base in the U.S. The deal aims to ensure TikTok can continue operating in the country and satisfy strict U.S. laws designed to limit foreign control of critical tech services.
In an internal memo reviewed by ABC News, TikTok CEO Shou Zi Chew announced that TikTok and its parent company ByteDance have reached binding agreements with investors to form the new U.S. venture. The joint venture will be majority-owned by U.S.-based investors, and the deal is expected to close on January 22, 2026.
What the Joint Venture Means
Ending Years of Uncertainty
For years, U.S. lawmakers and national security officials have expressed concerns that TikTok’s ownership by Chinese tech company ByteDance could pose risks related to data privacy and foreign influence. These concerns led Congress to pass laws requiring ByteDance to divest TikTok’s U.S. operations or face a ban.
By forming this joint venture, TikTok aims to comply with those legal requirements and avoid being banned in the U.S. The agreement is positioned as a compromise that keeps TikTok active for millions of American users while responding to security demands.
Who Is Involved in the New Venture?
Major Investors Step In
The new U.S. joint venture will include participation from major technology and investment firms. According to the internal memo, three companies Oracle Corporation, Silver Lake, and MGX (an Abu Dhabi-based investment firm) will each hold a similar share of the venture. These investors bring significant resources and experience, and their involvement is meant to reassure U.S. officials and the public about the governance and oversight of TikTok’s U.S. arm.
Together, Oracle, Silver Lake and MGX will own a large portion of the new U.S. entity, with TikTok’s Chinese parent ByteDance retaining a smaller minority stake of 19.9%. Affiliates of existing ByteDance investors will hold the remaining shares. This structure ensures a majority of U.S. and allied investor control in the joint venture.
Why the Deal Matters to Users and Creators
TikTok’s Popularity in America
TikTok remains one of the most widely used social media platforms in the United States, with over 170 million users who rely on it for entertainment, social connection, and business promotion. The app’s algorithm, which serves personalized video recommendations, has made it especially popular among younger audiences and creative communities.
Without a deal like this, TikTok’s future in the U.S. was uncertain. A ban would have immediately cut millions of users off from the platform and disrupted revenue streams for creators, advertisers, and small businesses. This new joint venture is designed to prevent that outcome and keep the app available to its large American audience.
What the Joint Venture Will Do
Securing Data and Moderation
Under the terms of the agreements, the new U.S. joint venture will be responsible for key technical and operational areas that have drawn scrutiny from regulators. These include:
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Data protection — storing and managing U.S. user data locally.
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Algorithm oversight — retraining TikTok’s recommendation algorithm on U.S. data.
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Content moderation — enforcing safety rules and policies to protect users.
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Software assurance — ensuring compliance with national security standards.
By focusing on these functions, the joint venture aims to reduce concerns about foreign influence and give U.S. authorities more transparency and control over how TikTok operates domestically.
Public and Political Responses
A Mixed Reaction
The deal has generated mixed reactions from experts and politicians. Some view it as a pragmatic solution that preserves TikTok’s presence while addressing legitimate national security issues. Others remain skeptical about how much real control the U.S. investors will have, especially since ByteDance retains a minority stake and will continue managing lucrative parts of the business like advertising and e-commerce.
Critics of the deal have also raised concerns about the concentration of power among a few large tech investors and the potential implications for competition and content neutrality on the platform.
What Happens Next?
Looking Toward Closing
The agreements are expected to finalize on January 22, 2026. Until that date, TikTok leadership will continue working with investors and regulators to complete the transition smoothly. The company has reiterated its focus on serving users, creators, and businesses throughout the process.
Once the joint venture is fully operational, TikTok will operate under its new structure complete with a majority-American board of directors tasked with governing the platform’s key functions in the U.S. This governance shift aims to satisfy legal and security frameworks while allowing the app to remain a vital part of daily life for millions of Americans.
What It Means for the Future
Stability and Compliance
For many users and industry watchers, this deal represents stability after years of uncertainty. TikTok’s journey from potential ban to political compromise highlights the complex intersection between technology, national security, and corporate governance.
This development could also set a precedent for how foreign-owned tech companies navigate similar legal challenges in the United States and other countries. The emphasis on data security and American oversight may shape future policy decisions affecting social media platforms and digital services.
Conclusion
TikTok’s signing of agreements to form a new U.S. joint venture marks a major milestone for the app and its millions of American users. With backing from major U.S. and international investors, a newly structured ownership model aims to address national security concerns while keeping the platform operating in the United States. As the closing date approaches early next year, both industry insiders and everyday users will be watching closely to see how this shift unfolds and what it means for the app’s future.