The Chinese company ByteDanceowner of the popular short video platform TikTok, has taken a significant step by signing binding agreements with Oracle, Silver Lake y MGX to establish a joint venture in the United States. This partnership aims to bring together TikTok’s operations in the country and is designed so that American investors have a majority stake in the new entity. In this way, the ban on the application on US soil will be avoided, a measure that had been proposed by the White House.
In an internal statement addressed to TikTok employees, the company’s CEO, Shou Chew, reported on the creation of the TikTok USDS Joint Venture, detailing that the transaction is expected to close on January 22, 2026. According to Chew, once the operation is completed, the new joint venture in the United States, based on the current TikTok US Data Security (USDS) organization, will operate independently and will have authority over key aspects such as data protection, algorithm security, content moderation and assurance. of software in the country.
On the other hand, TikTok’s US entities globally will continue to be responsible for managing product interoperability and certain commercial activities such as e-commerce, advertising and marketing, as indicated in the internal memo.
TikTok’s new joint venture will be majority owned by American investors and governed by a seven-member board of directors. Specifically, the consortium of new investors, which includes Oracle, Silver Lake and MGX, is expected to own 50% of the stake, with 15% each. The remaining 30% will be controlled by affiliates of existing ByteDance investors, while approximately 20% will be owned directly by ByteDance.
The decision to establish this joint venture in the United States comes in response to a national security law that forced ByteDance to divest from TikTok’s operations in the country or face a ban on its activities. In September of last year, former United States President Donald Trump signed an executive order that allowed TikTok to continue in the country for a period of 120 days, through an agreement that involved US investors taking control of the company through a new entity based in US territory. In this scenario, ByteDance would retain a minority stake, no more than 20%, and the fundamental role that Oracle would play in the process was highlighted.
Following this agreement, Oracle shares rise more than 5% in the morning on Wall Street.