7 months ago
TikTok Finalizes US Joint Venture Deal
TikTok, a popular social media app, has made a deal to avoid being banned in the United States.
The company's parent, ByteDance, has set up a new company where most of it is owned by American investors.
This new company will handle TikTok's business in the US and make sure that user data is safe.
The deal comes after years of arguments about whether TikTok should be allowed in the US because of concerns about data privacy and national security.
Over 200 million Americans use TikTok, so this deal is important for many people.
President Donald Trump has claimed credit for the deal and thanked Chinese President Xi Jinping for approving it.
The new company will be managed by Oracle, Silver Lake, and MGX, with ByteDance keeping a small part of it.
TikTok's parent company, ByteDance, finalized a deal to create a majority American-owned joint venture to avoid a US ban.
The joint venture, TikTok USDS Joint Venture LLC, will be managed by Oracle, Silver Lake, and MGX, with ByteDance retaining a minority stake of 19.9%.
The deal addresses national security concerns and complies with a 2024 Congress ban conditional on ByteDance selling the app to a US company.
Investors will hold 80.1% of the new JV, with additional investors including Dell Family Office, Susquehanna International Group, and General Atlantic.
President Donald Trump claimed credit for the deal, thanking Chinese President Xi Jinping for approving it, and highlighted the app's role in securing the youth vote in the 2024 US Presidential elections.
- Who
- TikTok, ByteDance, Oracle, Silver Lake, MGX, US President Donald Trump, Chinese President Xi Jinping
- What
- Formation of a US joint venture to avoid a ban and comply with US regulations
- Where
- United States
- When
- Deal finalized in September 2025, initial ban attempt in 2020, Congress ban passed in 2024
- Why
- To address national security concerns and comply with US regulations, ensuring data protection and algorithm security
Trump's Perspective
ByteDance's Perspective
Credit for the Deal
Trump's Perspective
Trump claims significant credit for facilitating the deal, stating he helped 'save' TikTok and that it will be owned by 'Great American Patriots and Investors.'
ByteDance's Perspective
ByteDance, while retaining a minority stake, has not publicly disputed Trump's claims but focuses on complying with US regulations to continue operations.
Relationship with China
Trump's Perspective
Trump thanks Chinese President Xi Jinping for approving the deal, highlighting a cooperative relationship.
ByteDance's Perspective
ByteDance's compliance with the deal reflects its need to navigate US regulatory pressures while maintaining some operational control.
Key facts
- Companies Involved
- TikTok, ByteDance, Oracle, Silver Lake, MGX, Dell Family Office, Susquehanna International Group, General Atlantic
- US Users
- Over 200 million
- US Businesses Using TikTok
- 7.5 million
- Investors' Stake
- 80.1%
- ByteDance's Stake
- 19.9%
- JV Name
- TikTok USDS Joint Venture LLC
- Deal Announcement Date
- September 2025
- Congress Ban Passed
- 2024
- Initial Ban Attempt
- 2020
- CEO of New JV
- Adam Presser
- Chief Security Officer
- Will Farrell
Timeline
US extends TikTok deadline, triggering sale ultimatum.
Then, Oracle, Silver Lake, MGX step in, striking deal.
They secure majority stake, ByteDance retains minority share.
TikTok, ByteDance form joint venture to address US concerns.
Quotes
TikTok
Social media platform
“Oracle and its partners will retrain, test and update the content recommendation algorithm on U.S. user data”
theweek.com
Anupam Chander
Georgetown University law professor
“We may have traded fears of foreign propaganda for the reality of domestic propaganda”
theweek.com
Sources
TikTok reaches deal for new US joint venture to avoid American ban
TikTok Finalises a Deal to Form a New American Entity
'Happy to have helped save TikTok', says Trump, praises China's Xi for helping him close deal
Trump Claims Credit As TikTok Reaches Deal To Continue Operating In US
TikTok closes $14 billion deal to secure US future – Who owns the new company?
Ban Dodged? TikTok Strikes Last-Minute Deal With American Investors in the US
TikTok, parent ByteDance form JV to transfer parts of US business to investors Oracle, Silver Lake and MGX
Trump thanks Xi as TikTok seals deal with Oracle, others; hints at China visit later in 2026
TikTok deal timeline: From proposed ban in 2020 to ByteDance JV for US unit sale in 2026 — Here's all you need to know
TikTok finalizes deal creating US version
TikTok Seals Deal For New US Joint Venture To Avoid American Ban
TikTok forms US joint venture under security order
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