China’s ByteDance said on Thursday it had signed binding agreements with three major investors to form a joint venture that will operate TikTok’s U.S. app, a move aimed at averting a U.S. ban and ending years of uncertainty over the popular video platform’s future.
The agreement marks a milestone for TikTok, which is used by more than 170 million Americans, following a prolonged political and legal battle that began in August 2020, when then-President Donald Trump first sought to ban the app on national security grounds.
Under the deal, a new entity, TikTok USDS Joint Venture LLC, will operate TikTok’s U.S. business. American and global investors will collectively hold an 80.1% stake, while ByteDance will retain 19.9%, following the divestiture of control required under a 2024 U.S. law, TikTok said.
“We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” TikTok CEO Shou Zi Chew said in a memo to employees seen by Reuters.
The managing investors are Oracle, Silver Lake and Abu Dhabi-based MGX, which together will own 45% of the new entity. Affiliates of existing ByteDance investors will hold 30.1%, while ByteDance will retain its minority stake, according to the memo, confirming details previously reported by Reuters.
Oracle declined to comment. The White House referred questions to TikTok.
Chew said the joint venture would operate as an independent entity with authority over U.S. data protection, algorithm security, content moderation and software assurance.
Oracle will serve as TikTok’s “trusted security partner,” responsible for auditing and validating compliance, including safeguarding U.S. user data, which will be stored in Oracle-managed cloud infrastructure located in the United States.
Despite the divestiture, TikTok’s global organization will continue to manage certain global product interoperability and commercial activities, including e-commerce, advertising and marketing, Chew said.
The agreement follows an outline unveiled in September, when Trump delayed enforcement of a law that would have banned TikTok unless ByteDance divested its U.S. assets. Trump said at the time the proposal met the law’s divestiture requirements.
The 2024 legislation required TikTok to cease operations by Jan. 19 unless a divestiture was completed. Trump, who began his second presidential term on Jan. 20, chose not to enforce the ban.
Representative John Moolenaar, a Republican who chairs the House Select Committee on China, previously said he would host the leadership of the new TikTok entity at a congressional hearing in 2026.
Trump has credited TikTok with helping him win re-election last year and has more than 15 million followers on the platform. The White House launched its own official TikTok account in August.
Democratic Senator Elizabeth Warren criticized the deal, saying key questions remained unanswered.
“Americans deserve to know if the president struck another backdoor deal for this billionaire takeover of TikTok,” Warren said in a post on X.
Trump said in September that investors involved in the transaction could include Dell Technologies founder Michael Dell, Fox Corp chairman emeritus Rupert Murdoch, and several other high-profile investors.
The deal includes a seven-member board for the U.S. joint venture, with ByteDance appointing one director and Americans holding a majority of seats.
Craig A. Huber, an analyst at Huber Research Partners, said he expected the agreement to clear regulatory approval.
“At this stage, I see no regulatory issues, particularly given the federal government and President Trump were very involved in putting the transaction together from the beginning,” he said.
ByteDance did not immediately respond to a request for comment.
