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In a significant development for the social media landscape, ByteDance, the Chinese parent company of TikTok, has announced a deal to create a new joint venture predominantly owned by American investors. This agreement addresses national security concerns that have previously threatened the app’s operations in the United States, where it has over 200 million users.
The arrangement aims to secure TikTok’s future, allowing it to operate under an ownership structure designed to mitigate risks related to data privacy and security. This milestone marks a long-awaited resolution to tensions surrounding TikTok since former President Donald Trump attempted to enact a ban on the app in 2026.
Formation of the new joint venture
Under the terms of the agreement finalized on January 22, 2026, a consortium of American investors, including notable firms such as Oracle, Silver Lake, and MGX, will hold an 80.1% stake in the new entity. ByteDance will retain a minority interest of 19.9%. This strategic partnership aims to provide a framework to address concerns that have affected the app’s U.S. operations.
ByteDance emphasized that the new TikTok joint venture will implement stringent measures to protect national security. These include enhanced data protections, secure algorithms, effective content moderation, and comprehensive software assurances for users in the United States.
Leadership and governance
The joint venture’s leadership structure will be vital to its success. Adam Presser, the former head of operations and trust and safety at TikTok, has been appointed as CEO. He will work alongside a board largely composed of American members, including TikTok’s current CEO, Shou Chew, who will oversee the platform’s global strategy.
This governance model is designed to enhance operational efficiency and build trust with users by ensuring compliance with U.S. standards on data security and privacy.
Background and implications of the deal
This deal comes against a backdrop of intense scrutiny of TikTok’s operations, fueled by concerns over its ties to the Chinese government and the potential misuse of user data. In 2026, Congress passed a law, supported by bipartisan majorities, requiring TikTok to divest from ByteDance or face a ban in the U.S. By the time the law reached its deadline, uncertainty surrounded the app’s future, leading to a brief suspension of its services.
On his first day in office, President Trump took actions to keep TikTok operational while negotiations for the sale were pursued. Extensions granted by his administration allowed TikTok to explore various ownership options, including partnerships with U.S. firms.
Future outlook for TikTok
As the new joint venture materializes, it is expected to provide TikTok with renewed stability in the U.S. market. This development is significant, considering the platform’s influence on social media trends and public discourse. With over 200 million users in the U.S, TikTok remains a key player in the digital landscape.
Furthermore, this agreement could signal a shift in how foreign-owned tech companies navigate the U.S. market, potentially setting a precedent for future partnerships that address national security concerns while fostering innovation.