TikTok has signed an agreement to divest its U.S. operations to a newly created American-controlled joint venture, potentially ending years of political, legal, and regulatory scrutiny surrounding the platform’s ownership and data security. According to a report by Axios, the transaction is expected to close on January 22, 2026, and was communicated internally by TikTok CEO Shou Zi Chew.
Under the agreement, the new entity will operate as TikTok USDS Joint Venture LLC. American investors Oracle, Silver Lake, and Abu Dhabi-based investment firm MGX will jointly hold a 45% stake. Affiliates of existing ByteDance investors will own nearly one-third of the venture, while ByteDance itself will retain close to 20% ownership.
The U.S. joint venture will assume direct responsibility for data protection, algorithm integrity, content moderation, and software security for U.S. users. As part of the transition, TikTok’s recommendation algorithm will be retrained using U.S.-based data to ensure independence from foreign influence. Oracle will act as the “trusted security partner,” auditing and validating compliance with national security requirements.
Once finalised, the joint venture will operate independently with authority over trust and safety functions in the U.S. market. Meanwhile, TikTok’s global U.S.-based teams will continue supporting product interoperability and selected commercial activities such as advertising, marketing, and e-commerce.
The deal reportedly values TikTok’s U.S. business at approximately $14 billion. It follows a preliminary agreement reached in September between the U.S. government and Chinese authorities, after years of pressure dating back to 2020. If completed, the transaction would mark a major resolution in one of the most closely watched tech and geopolitics disputes in recent years.
