TikTok Secures US Future Through Landmark Joint Venture

TikTok has reached a decisive milestone in securing its operations in the United States after years of regulatory pressure and national security concerns. According to Bloomberg, the company has finalized a US-based joint venture led by Oracle, Silver Lake, and Abu Dhabi-backed MGX, ensuring continued access to more than 200 million US users.

Under the new structure, TikToks US operations are placed into a separate entity, TikTok USDS Joint Venture LLC, which is majority US-owned and governed. ByteDance retains a minority stake of under 20%, reducing foreign control while allowing continued strategic involvement. The arrangement addresses bipartisan legislation passed in 2024 that required TikTok to divest or face a potential ban.

Oracle plays a central role in the joint venture, providing cloud infrastructure to host US user data and oversee key elements of TikToks recommendation algorithm within the United States. This move is intended to strengthen data security, transparency, and regulatory compliance.

The joint venture will be overseen by a multi-member board that includes executives from TikTok, Oracle, and Silver Lake, with responsibility for governance, trust and safety, and compliance oversight. TikTok has confirmed that US users will experience no disruption to the app, with accounts and features remaining unchanged.

According to Social Media Today, the US entity will also include related applications such as CapCut and Lemon8, consolidating ByteDances US-facing products under a single regulatory-compliant structure.

While questions remain around long-term oversight and enforcement, the agreement marks a significant resolution to TikToks prolonged regulatory uncertainty in the US and sets a precedent for how foreign-owned digital platforms may operate under stricter governance frameworks.

Sources: Bloomberg; Social Media Today; TechCrunch