ByteDance has signed binding agreements to form a new joint venture that will operate TikTok’s U.S. app, a move aimed at resolving longstanding national security concerns and avoiding a potential U.S. ban, Reuters reported.

Under the deal, TikTok’s Chinese parent will retain a 19.9% stake, while American and global investors will control the remaining 80.1% of the new entity, according to details confirmed by Reuters. The joint venture, to be called TikTok USDS Joint Venture LLC, will be led by Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment group MGX, which will collectively hold 45% ownership. Affiliates of existing ByteDance investors will hold an additional 30.1%.

TikTok CEO Shou Zi Chew told employees in a memo seen by Reuters that the agreement would allow the app’s more than 170 million U.S. users to continue accessing the platform, while placing key operations under U.S.-based oversight. The new joint venture will operate as an independent entity with authority over U.S. data protection, algorithm security, content moderation, and software assurance.

The deal follows years of political and regulatory pressure that began in 2020, when then-President Donald Trump first attempted to ban TikTok over concerns about Chinese government access to U.S. user data. A 2024 law required ByteDance to divest TikTok’s U.S. assets by January 19, 2026, though Trump delayed enforcement while negotiations continued, Reuters reported.

As part of the agreement, Oracle will serve as TikTok’s “trusted security partner,” responsible for auditing compliance and ensuring U.S. user data is stored securely on Oracle-run cloud infrastructure within the United States. The board of the new company will have seven members, with ByteDance appointing one and U.S. representatives holding a majority.

While the White House previously indicated the deal met divestiture requirements, some lawmakers remain skeptical. Senator Elizabeth Warren criticized the arrangement as a potential “billionaire takeover,” calling for greater transparency. Analysts cited by Reuters, however, said regulatory approval is likely given the administration’s involvement in shaping the deal.

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