TikTokowned by Chinese company ByteDance, has been at the center of controversy in the US for years due to concerns about user data being accessed by the Chinese government.
On Thursday, January 22, 2026, TikTok declare that TikTok USDS Joint Venture LLC has been officially established to comply with President Trump executive order which approved the sale of TikTok’s US operations to a group of American investors. Currently, ByteDance will own less than 20% of the new entity, and the rest will be non-Chinese owned.
Over the years, US users have often been caught in the middle of this tension, facing uncertainty about how access to these apps will change – for creator who use TikTok for make a livingThe stakes were even higher. Last year, the app suffered a temporary outage in the US that left millions of users confused before it was quickly restored. TikTok returns to the App Store and Google Play Store on February 2-2025.
Several investors competed to buy the app, and after President Trump extended the deadline for TikTok’s ban four times, the battle finally stopped. At December 2025TikTok has officially signed a deal to divest part of its US entity to a group of American investors.
Earlier in 2025, President Trump has declare that Chinese President Xi Jinping has given his approval to the TikTok deal, which will allow a consortium of US investors to take control of the platform. ByteDance has publicly stated that it will ensure that the platform remains available to American users.
Who owns TikTok in the US?
ByteDance will retain a nearly 20% stake in the company, while non-Chinese investors will hold the remaining 80% of the ownership TikTok USDS Joint Venture.
The managing investor group includes Oracle, private equity firm Silver Lake, and investment firm MGX. The three investors will hold 15% of the US operations, or 45% together.
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Other investors, which include existing ByteDance investors, make up another 35% of the venture’s ownership. These include the Dell Family Office (Michael Dell’s investment company), Susquehanna Vastmere affiliates, Alpha Wave Partners, and several others, listed in TikTok press release.
Report estimate that TikTok US is worth about $14 billion – a figure that was also mentioned by Vice President JD Vance.
The newly formed “TikTok USDS Joint Venture LLC” will oversee the operation of the app, including data protection, algorithmic security, content moderation, and software assurance.
Oracle will be a trusted security partner, responsible for auditing and ensuring compliance with National Security Provisions, according to the memo. The company has provided cloud services for TikTok and managed user data in the U.S. In particular, Oracle previously made an offer for TikTok in 2020.
White House officials have previously said that Oracle will replicate and secure the new US version of the algorithm, and US-based TikTok owners can rent the algorithm from ByteDance, which Oracle will retrain.
ByteDance will not have access to information about US TikTok users or any influence on the US algorithm.
How will TikTok change for US users?
Since the deal was just finalized, it’s unclear how the 200 million American TikTok users will be affected.
When earlier report suggests US users may need to transition to a new platform, more recent reports has denied this claim, assuring users that there is no need to download new apps.
It’s also unclear how user feed algorithms will be affected at this point.
How did we get here?
To fully understand this high-stakes drama, we’ll revisit the timeline of TikTok’s tumultuous relationship with the US government, which has led to various legal battles and negotiations.
The first drama begins in August 2020when Trump signed an executive order to ban transactions with parent company ByteDance.
A month later, the Trump administration sought to force the sale of TikTok’s US operations to a US-based company. Major contenders include Microsoft, Oracle, and Walmart. However, US judges are temporary blocked Trump’s executive order allows TikTok to continue operating while the legal battle unfolds.
Things began to improve after the transition to the Biden administration. After the Senate sign up for a bill on TikTok, President Joe Biden enter.
As an answer, TikTok is suing the US governmentchallenged the constitutionality of the ban and argued that the app and its American users had their First Amendment rights violated. The company has consistently denied that there is a security threat, insisting that data stored in the US complies with all local laws.
Fast forward to 2024: Trump has had a change of heart since the first season and seeks to obtain a 50-50 ownership arrangement between ByteDance and the US company.
There are several contenders, including The People’s Deal for TikToka consortium organized by the founders of Project Liberty Frank McCourt. The group has backing from investment firm Guggenheim Securities and law firm Kirkland & Ellis. Supporters include the co-founder of Reddit Alexis OhanianTV personality and investor Kevin O’LearyWorld Wide Web inventor Tim Berners-Lee, and senior research scientist David Clark.
Another group, called the Consortium of American Investors, is led by Employer.com the founder Jesse Tinsley and includes the co-founder of Roblox David BaszuckiCo-founder of Anchorage Digital Nathan McCauley, and famous YouTuber Mr. Beast.
More on running included Amazon, AppLovin, Microsoft, AI confusion, RumbleWalmart, Zoop, former CEO of Activision Bobby Kotikand former US Treasury Secretary Steven Mnuchin.
The story has been updated after publication.