TikTok Establishes US Joint Venture to Avert Ban, Address Security Concerns

TikTok Secures U.S. Operations with New Joint Venture

TikTok has officially established a new joint venture, TikTok USDS Joint Venture LLC, to ensure its continued operation in the United States. The move, finalized around January 22-23, 2026, addresses long-standing national security concerns raised by U.S. lawmakers regarding the platform's Chinese parent company, ByteDance, and aims to avert a potential ban.

The new entity is designed to safeguard U.S. user data and the platform's algorithm, allowing the popular video-sharing application to remain accessible to over 200 million American users and 7.5 million businesses.

Background: Years of National Security Scrutiny

The formation of the joint venture follows years of intense scrutiny and legislative efforts in the U.S. over concerns that the Chinese government could access American user data or influence content on the platform. A federal law passed in April 2024 mandated that TikTok either come under American ownership or face a ban. The platform experienced a brief, de jure nationwide ban from January 19, 2025, until January 22, 2026, though this ban was not fully enforced. Former President Donald Trump, who had previously proposed a ban in 2020, signed an executive order in September 2025 to keep TikTok running while a deal was sought.

This initiative, often referred to as 'Project Texas,' represents a $1.5 billion corporate restructuring effort by TikTok to build trust with the American government and users.

Structure and Safeguards of the New Entity

The TikTok USDS Joint Venture LLC is structured to ensure majority American ownership and control. While ByteDance will retain a minority stake of 19.9%, significant stakes of 15% each have been acquired by key investors including Oracle, Silver Lake, and the Emirati investment firm MGX. Other investors include Michael Dell's family office.

Central to the agreement are robust data security and content moderation protocols:

• Data Protection: All U.S. user data will be stored and protected within Oracle's secure U.S. cloud environment.
• Algorithm Security: The content recommendation algorithm for U.S. users will be retrained, tested, and updated using U.S. user data, and also secured within Oracle's cloud infrastructure.
• Cybersecurity Program: The joint venture will operate a comprehensive data privacy and cybersecurity program, subject to audits and certifications by third-party cybersecurity experts. This program adheres to major industry standards, including NIST CSF, 800-53, ISO 27001, and CISA Security Requirements for Restricted Transactions.
• Governance: The new entity will have an independent, seven-member, majority-American board of directors with decision-making authority over trust and safety policies and content moderation.

Adam Presser, formerly TikTok's head of operations, has been named CEO of the new joint venture, with Will Farrell serving as Chief Security Officer. TikTok's global CEO, Shou Chew, will also sit on the board.

Looking Ahead

This landmark agreement aims to resolve the prolonged uncertainty surrounding TikTok's future in the U.S., allowing the platform to continue its operations under strict national security safeguards. The deal is seen as a significant step in navigating the complexities of global social media platforms operating across different regulatory environments. The safeguards implemented by the joint venture will also extend to other TikTok-affiliated applications and websites in the U.S., such as CapCut and Lemon8.