LAGOS, Nigeria(VOICE OF NAIJA)- TikTok has pulled back from the brink of a US ban after announcing a new majority American-owned joint venture designed to address long-standing national security concerns tied to its Chinese parent company, ByteDance.
The short-form video giant revealed Thursday that it has formed TikTok USDS Joint Venture LLC, a new entity that will operate its US business and serve more than 200 million American users and 7.5 million businesses. The move brings TikTok into compliance with a federal law requiring Chinese-owned ByteDance to divest control or risk losing access to its biggest market.
The restructuring follows legislation passed under former President Joe Biden that mandated ByteDance reduce its ownership stake below 20 percent. Under the new arrangement, ByteDance will retain a 19.9 percent stake, clearing the legal threshold while ceding majority ownership to US investors.
Former President Donald Trump quickly embraced the announcement, publicly celebrating the deal and positioning himself as a central figure in its approval.
“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump wrote on Truth Social late Thursday.
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He also acknowledged Beijing’s role in finalizing the agreement, adding, “I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal.”
Three major investors, Silver Lake, Oracle and Abu Dhabi-based AI investment fund MGX, each hold 15 percent stakes in the joint venture. Oracle executive chairman Larry Ellison, a longtime Trump ally, emerged as a key player, while additional backing comes from the Dell Family Office, affiliates of Susquehanna International Group, General Atlantic and several other investment firms.
Governance of the new entity will rest with a seven-member, majority-American board, which includes TikTok CEO Shou Chew alongside senior executives from leading investment groups. TikTok executive Adam Presser has been appointed CEO of TikTok USDS, while Will Farrell will serve as chief security officer.
To address data privacy and influence concerns, TikTok said US user data will be stored exclusively in Oracle’s secure cloud infrastructure, with cybersecurity practices audited by third-party experts and aligned with federal standards. The joint venture will also maintain full authority over trust and safety policies, algorithm oversight and content moderation for American users.
Meanwhile, TikTok’s global operations will continue to manage international product development, advertising and e-commerce activities.
The deal arrives after years of bipartisan scrutiny, with US lawmakers, including Trump during his first term warning that China could exploit TikTok to collect Americans’ data or influence public opinion through its algorithm. Despite those concerns, Trump later credited the platform with helping him connect with younger voters and repeatedly delayed enforcement of the ban through executive orders, most recently extending the deadline to January 22.
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The finalized structure largely confirms an internal outline Chew shared with employees last month. Trump had previously hinted in September that an agreement with China was in place and compliant with US law, singling out Ellison as a major force behind the scenes.
Ellison’s renewed visibility extends beyond TikTok. The billionaire has recently partnered with Trump on high-profile artificial intelligence initiatives involving OpenAI and backed his son David Ellison’s aggressive expansion in Hollywood, including the takeover of Paramount and a bidding battle with Netflix for Warner Bros.
With its ownership reshaped and oversight tightened, TikTok now enters a new chapter in the US to preserve its cultural dominance while keeping political and regulatory pressures at bay.
