TikTok’s U.S. Sale Finalized
ByteDance and TikTok have solidified their commitment to a secure platform in the United States by finalizing agreements with three major investors: Oracle Corporation, Silver Lake, and MGX. This partnership will establish the TikTok USDS Joint Venture LLC, a new entity focused on complying with U.S. regulations.
TikTok’s U.S. Sale Finalized
The U.S. joint venture is a direct response to an Executive Order issued by former President Donald J. Trump on September 25, 2025. This order mandated that TikTok must ensure American ownership to safeguard national security and protect user data.
Ownership Structure
- 50%: Held by a consortium of new investors (Oracle, Silver Lake, and MGX at 15% each)
- 30.1%: Held by affiliates of existing ByteDance investors
- 19.9%: Retained by ByteDance
Through this structure, the joint venture will be overseen by a seven-member board composed predominantly of American directors, ensuring that decisions align with U.S. interests.
Responsibilities of the Joint Venture
The TikTok USDS Joint Venture will have crucial responsibilities, including:
- Data Protection: Ensuring the safety of sensitive U.S. user data within a secure cloud environment managed by Oracle.
- Algorithm Security: Re-training the content recommendation algorithm using only U.S. user data to prevent external interference.
- Content Moderation: Holding ultimate authority over content moderation policies in the United States.
- Software Assurance: Maintaining the integrity and deployment of the platform’s software in the U.S.
To further enhance its security measures, a trusted partner will audit and validate compliance with the established National Security Terms. Oracle has been designated as the security partner responsible for this critical oversight.
Impact on Users and Advertisers
The finalized sale ensures that over 170 million American users can continue to engage with TikTok as they currently do. Advertisers will also maintain their access to global audiences without disruptions, allowing TikTok to remain a vital platform for marketing and brand engagement.
The establishment of the TikTok U.S. joint venture marks a significant step in aligning the application with U.S. regulatory standards while providing users with secure, uninterrupted access to its services.
