TikTok Finalizes Deal to Avoid US Ban

The long-running uncertainty surrounding TikTok's future in the United States has reached a definitive conclusion. After more than a year of intense negotiations and regulatory pressure, the social media giant has finalized a joint venture agreement designed to keep its platform accessible to American users while addressing national security concerns.

The deal represents a significant pivot for the company, which faced the prospect of a complete shutdown or forced divestment. By establishing a new US-based entity, TikTok ensures its continued operation while restructuring its ownership and governance to meet the demands of US regulators.

The agreement centers on the creation of TikTok USDS Joint Venture LLC, a new entity that will oversee the platform's operations within the United States. This venture is majority-owned by a consortium of American investors, ensuring compliance with the Protecting Americans from Foreign Adversary Controlled Applications Act passed in 2024.

The investor group is led by managing investors Oracle, Silver Lake, and MGX, and includes individuals such as technology entrepreneur Michael Dell. Together, they hold just over 80% ownership of the new US entity. This structure places control of critical functions in American hands.

Key responsibilities for the new joint venture include:

• Securing all US user data
• Overseeing content moderation
• Managing trust and safety protocols
• Ensuring algorithm security

Meanwhile, TikTok's parent company, ByteDance, will retain approximately 20% ownership. Crucially, ByteDance will continue to control key business lines, including global product interoperability, e-commerce, marketing, and advertising. To manage these functions, new subsidiaries such as TT Commerce & Global Services LLC have been established.

Following the closing of the deal, Shou Chew will continue to serve as TikTok's global CEO. However, operational leadership for the US joint venture has been assigned to Adam Presser, a trust and safety executive. The Joint Venture's Board of Directors selected Presser based on his track record leading large-scale teams in Trust & Safety and Operations.

The transition involves a structural reorganization of TikTok's US workforce. Employees will be divided between entities based on their roles and whether they will remain under ByteDance's umbrella or transition to the new joint venture. Despite the change in corporate structure, the company expects business continuity for its users and partners.

In a memo sent to staff, Chew emphasized that interoperability remains critical. The goal is to ensure that the 7.5 million US businesses on TikTok and its millions of creators can continue to reach a global audience without disruption. The platform's growth in the US—now serving over 200 million Americans—provides a strong foundation for the joint venture's future success.

The finalization of this joint venture marks the end of a half-decade saga for TikTok in the US political landscape. The company first faced the threat of a ban in 2020 under the Trump administration, though those initial efforts were blocked by the courts.

The pressure intensified in 2024 with the passage of the Protecting Americans from Foreign Adversary Controlled Applications Act. TikTok's subsequent legal challenge reached the Supreme Court, where the company ultimately lost its case. The situation remained precarious throughout 2025, with TikTok's continued operation relying on a series of executive orders from President Trump, who opted to preserve the app rather than enforce a ban.

This new agreement represents the culmination of those efforts, satisfying the legislative requirements while allowing TikTok to maintain its global connectivity. As Chew noted in his message to employees, the deal enables US users to "continue to discover, create, and thrive as part of TikTok's vibrant global community."

For TikTok's massive user base, the deal ensures that the platform remains available and functional. Users will continue to access the same content and features, with the added assurance of enhanced data security protocols managed by the US-based entity.

For employees, the transition requires adherence to existing compliance standards. Chew's memo instructed staff to "continue to follow data privacy, content assurance, code compliance, and trust and safety protocols" that were already in place. The company has provided compliance training for all employees to ensure a smooth transition to the new operational framework.

The establishment of the joint venture also brings a sense of relief to the millions of businesses that rely on TikTok for marketing and commerce. With the legal hurdles cleared, these businesses can invest in the platform with greater confidence, knowing that TikTok's presence in the US is secure for the foreseeable future.

The creation of TikTok USDS Joint Venture LLC signals a new chapter for the company, defined by American ownership and strict regulatory oversight. While the platform retains its global connectivity, its US operations are now firmly under the control of a domestic consortium.

This resolution serves as a precedent for how foreign-owned technology platforms might navigate US national security concerns. For TikTok, the focus now shifts to executing its mission under this new structure, ensuring that the platform remains a space for creativity and commerce while operating within the safeguards established by the agreement.