TikTok Strikes US JV to Keep Operations After Ban Threat
TikTok Strikes US JV to Keep Operations After Ban Threat
TikTok teams with Oracle, Silver Lake and MGX to form a US-based joint venture to protect data, security, and access for American users amid regulatory pressure.
TikTok announced it has signed binding joint venture agreements with Oracle, Silver Lake and Abu Dhabi-based MGX to keep its US operations running and to address concerns over its Chinese ownership. The US venture will be responsible for US data protection, algorithm security, content moderation, and software assurance, with the exclusive right and authority to ensure that content, software and data for American users are secure. TikTok CEO Shou Chew noted in a staff memo that the new entity will help maintain service continuity in the United States as regulators evaluate the deal.
Ownership details show Oracle, Silver Lake, and MGX each holding 15% of the new entity, totaling 45%. Affiliates of existing ByteDance investors would own a little over 30%, while ByteDance itself would retain just under 20%—the maximum share allowed for a Chinese company under the current framework. TikTok Global’s US entities will also manage global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing. The parties said final closing is targeted for January 22, with additional work still ahead before then.
The move comes as a response to the regulatory pressure that culminated from a law enacted during the Trump era, which effectively pushed ByteDance to divest TikTok’s US operations or risk shutdown in the world’s largest market. US policymakers had warned of potential data-collection concerns and national security implications if ByteDance maintained control. By creating a US-led vehicle with prominent American investors, TikTok aims to reassure regulators and restore user access while keeping ByteDance as a minority owner under the agreed terms.
Analysts view the arrangement as a balancing act: preserving access for American users and commercial activity while addressing data-security and governance concerns. The new structure is designed to ensure that US data protection, algorithm governance, and content standards are overseen domestically, while enabling global interoperability across platforms. If completed, the deal could set a precedent for how foreign-owned tech firms operate in highly regulated markets, even as scrutiny remains high over data privacy and security.
