ByteDance signs deal to form JV to operate TikTok US app

FE Team | Published: December 20, 2025 23:47:14

BEIJING, Dec 20 (Reuters): TikTok's Chinese owner, ByteDance, said it signed binding agreements with three major investors to form a joint venture to operate TikTok's US app led by American and global investors in a bid to avoid a US government ban, a significant step toward ending years of uncertainty.
The deal is a milestone for the short video app used regularly by more than 170 million Americans after years of battles that began in August 2020, when President Donald Trump first tried unsuccessfully to ban the app.
The details of the deal are in line with one unveiled in September, when Trump delayed until Jan 20 enforcement of the law that bans the app unless its Chinese owners sell it amid efforts to extract TikTok's US assets from the global platform. He also declared that the deal met the terms of the divestiture requirements required by a 2024 law.
"We have signed agreements with investors regarding a new TikTok US joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community," TikTok CEO Shou Zi Chew told employees in a memo seen by Reuters.
Under the deal, American and global investors will hold an 80.1 per cent stake while ByteDance will retain a 19.9 per cent stake in the new joint venture after its divestiture.
Chew said the joint venture will "operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance."
The White House said in September the new joint venture will operate TikTok's US app but questions remain about the deal.
Despite the divestiture requirements, Chew added that TikTok global's US entities "will manage global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing."
The company told employees on Thursday that ByteDance and TikTok signed binding agreements with three managing investors: Oracle, Silver Lake and MGX, to form a new TikTok US joint venture named TikTok USDS Joint Venture LLC.
Oracle, Silver Lake and Abu Dhabi-based MGX will collectively own 45 per cent of the new entity, according to the memo, which confirms what Reuters and other outlets reported in September.
Oracle declined to comment. The White House referred questions to TikTok. TikTok said in the memo that the deal will enable "over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community. "
The deal, set on January 22, would end years of efforts to force ByteDance to divest its US business over national security concerns. Representative John Moolenaar, a Republican who chairs the House Select Committee on China said previously he would host the leadership of the new TikTok entity at a hearing in 2026.
Trump has credited TikTok, which has 170 million US users, with helping him win reelection last year. Trump has more than 15 million followers on his personal TikTok account. The White House also launched an official TikTok account in August.
Democratic Senator Elizabeth Warren said there were many unanswered questions.
"Trump wants to hand over even more control of what you watch to his billionaire buddies. Americans deserve to know if the president struck another backdoor deal for this billionaire takeover of TikTok," she said on X.
The US joint venture will be 50 per cent held by a consortium of new investors, including Oracle, Silver Lake and MGX with 15 per cent each; 30.1 per cent held by affiliates of certain existing investors of ByteDance; and 19.9 per cent will be retained by ByteDance, the memo said.