Jacksonville, Florida, January 24, 2026
TikTok has secured its U.S. operations through a new joint venture with American investors Oracle, Silver Lake, and MGX, following a law mandating divestment from ByteDance. The deal aims to comply with U.S. security regulations, allowing TikTok’s algorithm and user data to be localized in the U.S. Creators express cautious optimism as the platform updates its Terms of Service amidst ongoing security and compliance concerns.
Jacksonville, Florida – TikTok Finalizes U.S. Operations Deal
Jacksonville, Florida – TikTok has finalized a deal to continue its operations in the United States through a new joint venture with American investors Oracle, Silver Lake, and the Emirati firm MGX. This agreement follows a law requiring ByteDance, TikTok’s China-based parent company, to divest its U.S. operations. The law, passed in 2024 over national security concerns, set a January 2025 deadline for TikTok to secure a U.S. buyer or face a ban. The platform was briefly taken offline but was revived by executive orders from President Donald Trump, with Vice President JD Vance playing a key role in negotiations.
Under the new structure, TikTok’s algorithm and user data will be retrained and localized in the U.S., which may subtly alter user feeds. The platform’s addictive algorithm, still licensed from ByteDance, raises questions about compliance with the law that bans algorithmic cooperation with ByteDance. Concerns persist over security, content moderation, and political influence due to Oracle co-founder Larry Ellison’s ties to the Trump administration.
American creators remain cautiously optimistic. Some, like small business owners, praise the platform’s ongoing accessibility for commerce and visibility. Updates to the app’s Terms of Service include AI content disclosure and content limits for users under 13. The deal brings a sense of relief, but uncertainty lingers regarding its broader implications.
Key Details of the Deal
- New Entity Established: TikTok USDS Joint Venture LLC formed to oversee U.S. operations.
- Ownership Structure: Oracle, Silver Lake, and MGX each hold a 15% stake; ByteDance retains 19.9%.
- Data Localization: U.S. user data stored locally under Oracle’s management.
- Algorithm Control: Algorithm retrained on U.S. data; ByteDance retains licensing rights.
- Leadership: Adam Presser appointed CEO; seven-member board with majority American members.
Background Context
The agreement concludes years of regulatory uncertainty that began in August 2020, when President Trump first attempted to ban the app during his first term. Congress passed legislation in 2024 requiring ByteDance to divest TikTok’s U.S. operations or face a nationwide ban. The law was upheld by the Supreme Court in January 2025. President Trump has extended the deadline multiple times since then to let the negotiations play out.
Frequently Asked Questions (FAQ)
What is the TikTok USDS Joint Venture LLC?
The TikTok USDS Joint Venture LLC is a new entity established to oversee TikTok’s U.S. operations, ensuring compliance with U.S. laws and regulations.
Who are the investors in the new TikTok U.S. entity?
The investors include Oracle, Silver Lake, and the Emirati firm MGX, each holding a 15% stake, with ByteDance retaining a 19.9% stake.
What changes will occur to TikTok’s algorithm and user data?
TikTok’s algorithm and user data will be retrained and localized in the U.S., which may subtly alter user feeds. The algorithm remains licensed from ByteDance, raising questions about compliance with the law that bans algorithmic cooperation with ByteDance.
How does this deal affect American TikTok creators?
American creators remain cautiously optimistic. Some, like small business owners, praise the platform’s ongoing accessibility for commerce and visibility. Updates to the app’s Terms of Service include AI content disclosure and content limits for users under 13.
What is the background of this deal?
The agreement concludes years of regulatory uncertainty that began in August 2020, when President Trump first attempted to ban the app during his first term. Congress passed legislation in 2024 requiring ByteDance to divest TikTok’s U.S. operations or face a nationwide ban. The law was upheld by the Supreme Court in January 2025. President Trump has extended the deadline multiple times since then to let the negotiations play out.
Key Features of the Deal
| Feature | Details |
|---|---|
| New Entity Established | TikTok USDS Joint Venture LLC formed to oversee U.S. operations. |
| Ownership Structure | Oracle, Silver Lake, and MGX each hold a 15% stake; ByteDance retains 19.9%. |
| Data Localization | U.S. user data stored locally under Oracle’s management. |
| Algorithm Control | Algorithm retrained on U.S. data; ByteDance retains licensing rights. |
| Leadership | Adam Presser appointed CEO; seven-member board with majority American members. |
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