The long-standing threat of a ban on short-video platform TikTok in the United States has been averted for now, after the company transferred its US operations to a new joint venture controlled by American and US-aligned investors. The move addresses Washington’s national security concerns and allows TikTok to continue operating in one of its largest global markets.
The restructuring was completed just ahead of the January 23, 2026 deadline set by the administration of US President Donald Trump, which had mandated that TikTok’s American business be separated from the direct control of its Chinese parent company, ByteDance. Failure to comply would have triggered a nationwide ban on the app.
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New Structure for US Operations
Under the revised framework, TikTok’s American business will be run by a newly created entity named TikTok USDS Joint Venture LLC. The joint venture will oversee all operations related to platform management, data storage, content moderation and technology governance within the United States.
According to company statements, the new structure ensures uninterrupted service for more than 200 million users in the US, along with nearly 7.5 million small and medium businesses that rely on TikTok for marketing, sales and audience engagement.
Ownership and Control Details
The ownership structure of the joint venture has been designed to ensure decisive US control, a key condition imposed by American authorities. Around 50% of the stake will be held by US-based technology company Oracle, private equity firm Silver Lake, and UAE-backed investment firm MGX.
More than 30% ownership will remain with entities linked to ByteDance’s existing international investors, while ByteDance itself will retain only 19.9% equity in the new venture. As a result, over 80% of ownership and control will lie with American and international investors aligned with US regulatory requirements, significantly limiting ByteDance’s role.
US officials have consistently argued that Chinese ownership posed unacceptable risks, particularly in relation to user data access and influence over recommendation algorithms.
Data Security and Algorithm Oversight
TikTok has confirmed that under the new arrangement it will fully comply with US data protection, cybersecurity and algorithm governance regulations. All American user data will now be stored exclusively on US-based servers, with no access permitted to foreign governments or entities.
In addition, key decisions relating to content moderation, algorithmic operations and platform integrity will be subject to US legal oversight. These issues have been at the heart of the security debate surrounding TikTok since 2020.
A Dispute Dating Back to 2020
Concerns over TikTok’s presence in the US first emerged in 2020, when American lawmakers and intelligence officials raised alarms over potential data-sharing with China. Over the next several years, the platform faced investigations, legal challenges and legislative scrutiny, including multiple attempts to force divestment or impose restrictions.
In recent months, the Trump administration adopted a firmer stance, making it clear that TikTok would be banned unless its US operations were structurally separated from ByteDance’s control.
Relief for Creators and Small Businesses
The decision has come as a major relief to millions of American content creators, influencers and small businesses who depend on TikTok for income generation, brand promotion and customer outreach. The platform plays a significant role in the US digital economy, particularly for younger entrepreneurs and independent creators.
Industry analysts say a ban would have caused widespread disruption across advertising, e-commerce and creator ecosystems.
Regulatory Oversight to Continue
While the immediate risk of a ban has been removed, US regulatory agencies are expected to maintain continuous oversight of the new joint venture. Compliance with data localisation, transparency and security norms will be closely monitored.
Officials have indicated that any deviation from agreed safeguards could invite renewed scrutiny or enforcement action.
Looking Ahead
With the new ownership and governance framework in place, TikTok has taken a decisive step to secure its future in the US market. The coming months will test whether the platform can consistently meet American regulatory expectations while maintaining its growth and influence.
For now, TikTok remains operational in the US, with its future anchored to a structure designed to balance commercial continuity with national security priorities.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
