TikTok has officially finalized a long‑awaited restructuring of its United States operations, establishing a majority‑American joint venture—TikTok USDS Joint Venture LLC—to operate the popular video platform domestically under enhanced security measures and continued service for U.S. users.
This move marks the end of a years‑long legal and political saga over national security concerns and foreign ownership that threatened to ban the app nationwide.
What the Joint Venture Means for TikTok in the U.S.
Under the new structure, TikTok’s U.S. operations will be overseen by an entity that is majority owned by American investors and governed with specific safeguards to address security and data‑privacy concerns.
Leading the effort is Adam Presser, formerly TikTok’s head of operations and trust & safety, who has been appointed CEO of the joint venture. TikTok’s global CEO Shou Zi Chew will serve on the U.S. board of directors, which features a majority‑American, seven‑member board.
The Joint Venture will operate under defined protections focused on:
- Comprehensive data safeguards for U.S. users
- Algorithm security and oversight
- Robust content moderation systems
- Software assurances and enhanced cybersecurity protocols
These measures are designed to extend national security assurances demanded by lawmakers and regulators amid concerns over foreign influence and data access.
Ownership and Strategic Investors
The majority control of the TikTok USDS Joint Venture rests with an American‑led consortium that includes technology and investment firms such as Oracle, Silver Lake, and MGX. ByteDance, TikTok’s Beijing‑based parent company, retains a minority stake of approximately 19.9% in the new venture structure.
Oracle, a key participant, will host U.S. user data on its secure cloud infrastructure and play a central role in algorithm security and validation.
A Response to Regulatory and Legal Pressure
The move comes in response to U.S. regulatory actions aimed at addressing perceived security risks tied to foreign‑controlled platforms. In 2024, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act, requiring companies like TikTok to divest foreign control or face a ban on operations in the United States.
TikTok’s transition to a U.S. majority‑owned operation under the new joint venture fulfills this directive and allows the platform to continue serving more than 200 million American users without interruption.
Industry and User Implications
For creators, advertisers, and consumers alike, the joint venture secures TikTok’s presence in the U.S. and stabilizes the platform’s future amid geopolitical tensions. Importantly, the restructuring preserves TikTok’s core product while adding layers of security and compliance that satisfy both legislative intent and user trust priorities.
More about TikTok:
Staff Report
Staff Report
Staff Report
