After years of controversy over user data security, TikTok has reached an agreement that redefines its ownership structure and operations in the United States. Here are the essential details:

New Ownership Structure
The “TikTok USDS Joint Venture LLC” joint venture has been officially established. Chinese parent company ByteDance will retain a minority stake of less than 20%. The remaining 80% will be owned by a consortium of U.S. and non-Chinese investors.

Key Investor Groups
A management group composed of Oracle, Silver Lake, and MGX will collectively own 45% of the operations. Other investors, including some existing ByteDance shareholders, will own the remaining 35%. The estimated valuation of TikTok’s U.S. operations is around $14 billion.

Operational and Security Changes
The new entity will oversee all operations, including data protection, algorithms, and content moderation. Oracle will serve as the “trusted security partner,” responsible for auditing and ensuring compliance with national security terms. According to the agreement, ByteDance will have no access to U.S. user data or influence over the local algorithm.

User Experience
For TikTok’s more than 200 million U.S. users, the app is expected to continue operating without interruption. There will be no need to download a new platform. Potential changes to the algorithm’s functionality have not yet been detailed publicly.

Background
The relationship between TikTok and the U.S. government has been complex since 2020, when an initial executive order sought to force a sale. The process involved legal battles, multiple deadline extensions, and interventions from both the Trump and Biden administrations, culminating in this agreement in late 2025.

By: Nestor Castillo, ForAllTechNews Director