TikTok Finalizes US Joint Venture Deal to Avoid Ban

  • Publish date: Friday، 23 January 2026 Reading time: two min read

Landmark agreement restructures TikTok’s U.S. operations under majority American ownership to address national security concerns and keep the app running.

TikTok’s Chinese parent company, ByteDance, has finalised a deal to create a majority American-owned joint venture that will allow the popular social media platform to continue operating in the United States, averting a long-threatened ban.

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The new company, TikTok USDS Joint Venture LLC, will see U.S. and global investors hold an 80.1 per cent stake, with ByteDance retaining a 19.9 per cent minority share. Key investors include cloud computing giant Oracle, private equity group Silver Lake and Abu Dhabi-based firm MGX, reflecting international backing for the deal.

The agreement, announced on Thursday, January 22, 2026, comes after years of political and legal pressure in the U.S. over national security concerns related to TikTok’s Chinese ownership. In response to bipartisan legislation passed in 2024, Congress mandated that ByteDance divest its U.S. operations or face a nationwide ban on the app, which is used by more than 200 million Americans.

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Under the terms of the joint venture, U.S. user data, applications and TikTok’s recommendation algorithm will be secured through enhanced privacy and cybersecurity measures. Oracle is expected to host U.S. user data on its secure cloud infrastructure, while the venture’s board, with a majority of American directors, will oversee content moderation, trust and safety policies, and algorithm security according to federal standards.

The joint venture will also allow TikTok to operate with defined national security safeguards, including third-party audits and stringent data protections for its U.S. user base, which has been at the centre of scrutiny by U.S. lawmakers and security officials.

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Former U.S. President Donald Trump, who initially pursued TikTok’s ban and later supported efforts to preserve the platform under U.S. ownership, welcomed the deal, saying he was “so happy” the app would not be banned. The agreement has also received approval from relevant U.S. authorities as part of broader efforts to balance digital security with free expression online.

The establishment of the joint venture marks a significant moment in TikTok’s multi-year effort to resolve tensions between maintaining its U.S. presence and complying with evolving national security laws. With the deal now formalised, TikTok is expected to continue operations in America under its restructured ownership and governance framework.

This article was previously published on bahrainmoments. To see the original article, click here