The U.S. joint venture of TikTok is set to conclude in January

TikTok and ByteDance have executed binding agreements with Oracle, Silver Lake, and MGX to establish TikTok USDS Joint Venture LLC.

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TikTok and its parent firm ByteDance have conclusively signed binding agreements to establish a new American-led entity: TikTok USDS Joint Venture LLC, resolving years of regulatory ambiguity. An internal memo from CEO Shou Zi Chew, dated December 18, 2025, indicates that the significant agreement is set to conclude on January 22, 2026, so preventing a potential statewide ban and ensuring the platform's adherence to federal divestiture regulations.

The joint venture is supported by a formidable group of "managing investors," comprising cloud leader Oracle, private equity titan Silver Lake, and Abu Dhabi-based AI investment firm MGX. Under the revised ownership framework, these three corporations will each possess a 15% equity holding, aggregating to 45% of the new entity. The partnership will be 80.1% controlled by non-Chinese corporations, in conjunction with the 30.1% held by affiliates of current ByteDance investors, while ByteDance will maintain a minority share of 19.9%.

The accord establishes a new seven-member board of directors, predominantly composed of Americans, to oversee TikTok's U.S. operations. To mitigate enduring national security issues, the joint venture will possess exclusive jurisdiction over U.S. data protection, content moderation, and—importantly—algorithm security. The platform's renowned recommendation engine will be reconfigured using U.S. user data in a secure Oracle cloud environment, guaranteeing the feed is devoid of foreign interference. This agreement assures the app's 170 million American users of "business as usual," thereby solidifying the platform's cultural and financial relevance for the foreseeable future.