23.01.2026 20:22
TikTok announced that it will establish a joint venture, mostly owned by Americans, to implement data security measures in order to continue its operations in the U.S. The joint venture was created to protect U.S. user data.
A new joint venture, in which the majority stake is owned by American investors, has been established under an agreement that will allow the China-based social media platform TikTok to continue its operations in the United States. The structure, named TikTok US Data Security (USDS), will operate in accordance with the security and oversight conditions set by the U.S. government.
STRUCTURE IN ACCORDANCE WITH TRUMP'S EXECUTIVE ORDER
In a statement from the TikTok US Data Security (USDS) joint venture, it was noted that the company was established in compliance with the executive order signed by U.S. President Donald Trump on September 25, 2025.
The statement emphasized that the joint venture, which is predominantly owned by Americans, will operate under comprehensive measures such as data security, algorithm security, content moderation, and software guarantees to protect U.S. users.
U.S. USER DATA WILL BE STORED IN ORACLE CLOUD
Among the main goals of USDS is to ensure accountability. The statement highlighted that the data of U.S. users will be stored in Oracle's secure U.S. cloud infrastructure.
It was noted that the joint venture will secure the U.S. content ecosystem and will have the authority to make decisions regarding trust and safety policies as well as content moderation.
MAJORITY OF THE BOARD OF DIRECTORS WILL BE AMERICANS
It was stated that USDS will be managed by a board of directors consisting of 7 members, the majority of whom will be Americans. The board will include TikTok CEO Shou Chew, as well as executives from Oracle, Silver Lake, and Abu Dhabi-based MGX.
The announcement also revealed that the CEO of TikTok USDS will be Adam Presser.
ORACLE, SILVER LAKE, AND MGX EACH ACQUIRED 15% STAKE
It was announced that the three main investors of the joint venture are Silver Lake, Oracle, and MGX, with each of these companies holding a 15% stake.
Other investors include Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital. It was stated that TikTok's parent company ByteDance will hold a 19.9% stake in the joint venture.
TIKTOK CONTROVERSIES AND BAN PROCESS
On March 13, 2024, the U.S. House of Representatives overwhelmingly passed the "Law to Protect Americans from Applications Controlled by Foreign Adversaries," which was signed into law by then-President Joe Biden on April 24, 2024, after passing the Senate.
Under the law, it was anticipated that TikTok's main partner ByteDance would face a ban in the country unless it transferred 80% of its company assets to American partners, citing national security threats.
TRUMP EXTENDED THE DEADLINE AND OPENED THE WAY FOR THE SALE
Despite the expiration of the deadline set by the U.S. Congress, ByteDance did not transfer its shares, and the U.S. Supreme Court upheld the ban. However, President Donald Trump, who took office on January 20, 2025, extended the deadline for the ban to go into effect four times.
With the executive order signed on September 25, 2025, Trump opened the way for the sale of TikTok's operations in the U.S. to American investors.
ALGORITHM AND SOFTWARE OVERSIGHT WILL BE IN THE U.S.
The sales plan shared by the White House stated that the majority control of the joint venture to be established will be held by American investors, and the stake of ByteDance and its affiliates will be kept below 20%.
Additionally, it was noted that the oversight of algorithms, data storage, and software updates will be conducted by the new structure to be established in the U.S.