TikTok Secures Majority American-Owned Joint Venture to Prevent U.S. Ban
President Donald Trump signs an executive order in the Oval Office that puts into effect his plan for the social media and video streaming platform TikTok.
TikTok announced on Thursday that it has finalized a historic deal to establish a majority American-owned joint venture. This strategic move aims to prevent a potential ban on the popular social media app in the United States.
This agreement represents a significant milestone for TikTok, following years of legal and political challenges that began in 2020 when President Donald Trump expressed national security concerns regarding the Chinese-owned platform.
The newly formed Joint Venture LLC is built on the foundation of the TikTok U.S. Data Security (USDS) organization. This structure is designed to meet U.S. regulatory requirements set forth by Trump’s executive order on September 25 of last year, ensuring that millions of American users and businesses can continue to engage with the platform.
“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump stated in a post on Truth Social on Thursday.
TIKTOK REACHES AGREEMENTS ON NEW US JOINT VENTURE WITH CLOSING SET FOR 2026
Roughly 200 million Americans and 7.5 million businesses are active on TikTok. (Photo: Fabian Sommer/dpa (Photo by Fabian Sommer/picture alliance via Getty Images) / Getty Images)
“Today, TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025, now enabling more than 200 million Americans and 7.5 million businesses to continue to discover, create, and thrive as part of TikTok’s vibrant global community and experience,” the company stated.
Additionally, TikTok’s sister apps, including CapCut and Lemon8, will also fall under the joint venture’s U.S. oversight.
Under the agreement, American entities will hold an 80.1% stake in the new joint venture, while the original parent company, ByteDance, retains a 19.9% share. Three companies—cloud computing giant Oracle, private equity group Silver Lake, and Abu Dhabi-based MGX—will act as managing investors, each holding a 15% stake.
TRUMP SIGNS EXECUTIVE ORDER ALLOWING TIKTOK DEAL TO PROCEED
President Donald Trump speaks in the Rose Garden of the White House, Monday, June 1, 2020, in Washington. ((AP Photo/Patrick Semansky))
The new venture will create a domestic cloud environment under Oracle, implementing robust data privacy and cybersecurity measures to protect U.S. user data, apps, and algorithms. “The content recommendation algorithm will be secured in Oracle’s U.S. cloud environment,” the company confirmed.
Signage is displayed on a building at the Oracle Corp. headquarters campus in Redwood City, California, U.S., on Monday, March 14, 2016. (Michael Short/Bloomberg via Getty Images / Getty Images)
The new entity will be governed by a seven-member, majority-American board of directors, which includes representatives from major investment firms and technology companies. Adam Presser has been appointed as the chief executive officer of the new joint venture. Other notable board members include TikTok CEO Shou Chew, Oracle’s Kenneth Glueck, Silver Lake’s Egon Durban, and MGX’s David Scott.
The Joint Venture is designed to ensure that U.S. users maintain a “global TikTok experience,” allowing creators to be discovered worldwide while enabling American entities to manage commercial activities such as e-commerce, advertising, and marketing.
President Donald Trump signs an executive order in the Oval Office that puts into effect his plan for the social media and video streaming platform TikTok.
TikTok announced on Thursday that it has finalized a historic deal to establish a majority American-owned joint venture. This strategic move aims to prevent a potential ban on the popular social media app in the United States.
This agreement represents a significant milestone for TikTok, following years of legal and political challenges that began in 2020 when President Donald Trump expressed national security concerns regarding the Chinese-owned platform.
The newly formed Joint Venture LLC is built on the foundation of the TikTok U.S. Data Security (USDS) organization. This structure is designed to meet U.S. regulatory requirements set forth by Trump’s executive order on September 25 of last year, ensuring that millions of American users and businesses can continue to engage with the platform.
“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump stated in a post on Truth Social on Thursday.
TIKTOK REACHES AGREEMENTS ON NEW US JOINT VENTURE WITH CLOSING SET FOR 2026
Roughly 200 million Americans and 7.5 million businesses are active on TikTok. (Photo: Fabian Sommer/dpa (Photo by Fabian Sommer/picture alliance via Getty Images) / Getty Images)
“Today, TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025, now enabling more than 200 million Americans and 7.5 million businesses to continue to discover, create, and thrive as part of TikTok’s vibrant global community and experience,” the company stated.
Additionally, TikTok’s sister apps, including CapCut and Lemon8, will also fall under the joint venture’s U.S. oversight.
Under the agreement, American entities will hold an 80.1% stake in the new joint venture, while the original parent company, ByteDance, retains a 19.9% share. Three companies—cloud computing giant Oracle, private equity group Silver Lake, and Abu Dhabi-based MGX—will act as managing investors, each holding a 15% stake.
TRUMP SIGNS EXECUTIVE ORDER ALLOWING TIKTOK DEAL TO PROCEED
President Donald Trump speaks in the Rose Garden of the White House, Monday, June 1, 2020, in Washington. ((AP Photo/Patrick Semansky))
The new venture will create a domestic cloud environment under Oracle, implementing robust data privacy and cybersecurity measures to protect U.S. user data, apps, and algorithms. “The content recommendation algorithm will be secured in Oracle’s U.S. cloud environment,” the company confirmed.
Signage is displayed on a building at the Oracle Corp. headquarters campus in Redwood City, California, U.S., on Monday, March 14, 2016. (Michael Short/Bloomberg via Getty Images / Getty Images)
The new entity will be governed by a seven-member, majority-American board of directors, which includes representatives from major investment firms and technology companies. Adam Presser has been appointed as the chief executive officer of the new joint venture. Other notable board members include TikTok CEO Shou Chew, Oracle’s Kenneth Glueck, Silver Lake’s Egon Durban, and MGX’s David Scott.
The Joint Venture is designed to ensure that U.S. users maintain a “global TikTok experience,” allowing creators to be discovered worldwide while enabling American entities to manage commercial activities such as e-commerce, advertising, and marketing.
