President Trump’s administration has successfully forced a major divestiture of TikTok, leading to the creation of the TikTok USDS Joint Venture LLC. This new entity, majority-owned by American investors including Oracle, Silver Lake, and MGX, will manage U.S. operations, securing user data and algorithms on American cloud servers and blocking access by China’s ByteDance. The deal preserves the platform for 200 million U.S. users while establishing robust national security safeguards, hailed by the President as a definitive victory against foreign data espionage.
Story Highlights
- TikTok USDS Joint Venture LLC launches January 23, 2026, with 80.1% U.S. ownership led by Oracle, Silver Lake, and MGX, complying with Trump’s September 2025 Executive Order.
- ByteDance retains minority 19.9% stake but loses access to U.S. user data and algorithms, now secured on Oracle’s American cloud servers.
- Deal averts full ban, preserving platform for 200 million U.S. users and 7.5 million businesses while enforcing NIST, ISO, and CISA security standards.
- Trump hails victory as “Great American Patriots” success, crediting coordination with Xi Jinping for national security win over Chinese tech threats.
- New safeguards include independent U.S. board, algorithm retraining, and third-party audits, setting precedent against foreign data espionage.
Trump Delivers National Security Victory
President Donald Trump signed the Executive Order on September 25, 2025, halting enforcement of prior bans for 120 days to allow divestiture. TikTok announced TikTok USDS Joint Venture LLC on January 23, 2026. This new entity manages U.S. operations for TikTok, CapCut, and Lemon8. American investors now hold 80.1% ownership. ByteDance’s stake dropped to 19.9%. U.S. user data and algorithms reside exclusively on Oracle’s cloud. This structure blocks Beijing access, addressing long-standing espionage fears.
#Latest: ByteDance has set up #TikTok USDS Joint Venture LLC to avert a U.S. ban. The new entity will safeguard U.S. user data, apps and the algorithm.
American and global investors, including Oracle, Silver Lake and MGX, will hold an 80.1% ownership stake, while ByteDance… pic.twitter.com/dwmJKHZExA
— CGTN (@CGTNOfficial) January 23, 2026
Key Stakeholders Secure American Control
Oracle leads with 15% stake, alongside Silver Lake and MGX at 15% each in the managing group. A seven-member majority-American board governs operations. ByteDance holds no U.S. decision-making power. Adam Presser serves as CEO, and Will Farrell as Chief Security Officer. They ensure compliance with NIST, ISO, and CISA standards. Oracle hosts data, conducts audits, and secures the algorithm leased from ByteDance. Trump administration oversight guarantees independence from Chinese influence.
Historical Context of China Tech Threats
TikTok faced U.S. scrutiny since 2020 over ByteDance’s ties to Beijing, prompting India’s full ban and Canada’s dissolution order. Biden’s April 2024 law demanded U.S. ownership or shutdown, stalled by legal fights. Trump reversed his first-term approach, extending deadlines four times. He secured Xi Jinping’s approval for U.S. control. Past bids by Microsoft, Oracle, and Walmart collapsed due to Chinese resistance. This deal succeeds with strict safeguards and global interoperability for U.S. creators.
Privacy policy updates now collect precise geolocation and AI interaction data. TikTok emphasizes comprehensive protections and algorithm security. Trump posted on Truth Social thanking Xi for enabling the resolution. Operations remain fully active pending third-party audits. The structure maintains a vibrant platform while prioritizing American sovereignty.
Impacts Protect Users and Economy
The agreement averts a total ban, sustaining billions in ad and e-commerce revenue for 200 million users and 7.5 million businesses. U.S. creators retain global reach without security risks. Short-term continuity bolsters economic stability. Long-term, it establishes a model for divesting Chinese tech influence through leased algorithms and isolated data. Oracle’s role strengthens U.S. cloud dominance. Other Chinese apps face heightened pressure. Social media now standardizes federal compliance.
Professionals praise robust safeguards isolating U.S. operations. TechCrunch highlights Oracle’s algorithm retraining. Cautions note ByteDance’s minority stake and lease terms. Trump frames it as a definitive national security triumph. This resolution counters years of globalist leniency, restoring limited government oversight on foreign threats to American values and privacy.
Watch the report: TikTok Seals Deal to Operate in the US After Years of Drama
Sources:
- Announcement from the new TikTok USDS Joint Venture LLC – Newsroom
- TikTok finalizes deal to form new American entity : NPR
- TikTok announces it has finalized deal to establish US entity, sidestepping ban
