TikTok Finalizes U.S. Joint Venture to Secure Operations and Avoid Ban
TikTok has officially established TikTok USDS Joint Venture LLC, a majority American-owned entity, to comply with U.S. national security requirements and prevent a potential ban on the app. The announcement came on January 22, 2026, just ahead of the January 23 deadline set by the latest executive order extension from President Trump.
The joint venture, built on the existing TikTok U.S. Data Security (USDS) framework, will oversee U.S. operations for the app, including CapCut, Lemon8, and other related services. It operates as an independent entity with safeguards for data privacy, algorithm security, content moderation, and software integrity. U.S. user data and the content recommendation algorithm will be managed in Oracle’s U.S. cloud environment, with the algorithm retrained and updated using only U.S. user data to enhance security.
Ownership structure gives American and global investors 80.1% control, while ByteDance retains 19.9%. Managing investors include Oracle, Silver Lake, and MGX (each holding 15%), alongside other participants such as Dell Family Office, Susquehanna affiliates, and additional firms. The venture is governed by a seven-member board featuring representatives from these groups, with TikTok CEO Shou Zi Chew serving as a director. Adam Presser, formerly TikTok’s head of operations and trust & safety, has been named CEO of the new entity.
This resolution follows years of negotiations, a 2024 law mandating divestiture, Supreme Court upholding in 2025, and multiple enforcement delays. The deal, valued in reports around $14 billion, provides a path for continued availability in the U.S. market.
Separately, TikTok secured a legal win in Canada, where a federal court on January 21, 2026, set aside a 2024 government order to wind down local business operations over national security issues. The matter was returned to the Industry Minister for fresh review after agreement between parties, allowing Canadian offices and employees to continue while the app remains accessible to users.
