TikTok USDS Joint Venture Created After Sale to US Investors
The long-standing uncertainty surrounding TikTok’s future in the United States has reached a resolution. On Thursday, January 22, 2026, the company announced the official formation of the TikTok USDS Joint Venture LLC. This move fulfills the requirements of President Trump’s executive order, which mandated the divestment of TikTok’s American operations to a domestic investor group to address national security concerns.
Under the new structure, ByteDance’s stake in the U.S. entity has been reduced to less than 20%. The remaining 80% is now held by a consortium of American investors, effectively ending years of legal battles and regulatory pressure regarding potential data access by the Chinese government.
Who owns TikTok in the U.S.?
The new entity is backed by a diverse group of investors. The managing group, which holds 45% of the U.S. operation, is comprised of:
- Oracle: 15% stake
- Silver Lake: 15% stake
- MGX: 15% stake
The remaining 35% of the non-Chinese ownership is distributed among other investors, including the Dell Family Office, Alpha Wave Partners, and Susquehanna affiliate Vastmere. The U.S. operation is reportedly valued at approximately $14 billion.
Oracle will take on a pivotal role as the trusted security partner, tasked with auditing the platform and ensuring compliance with National Security Terms. According to previous reports, Oracle will also handle the retraining of the algorithm, while ByteDance is barred from accessing U.S. user data or influencing the recommendation engine.
How will TikTok change for U.S. users?
For the 200 million Americans who use the app, the transition is expected to be seamless. Recent reports have clarified that users will not be required to download a new application or migrate to a different platform, putting to rest earlier speculation about a total service overhaul.
How did we get here?
The path to this deal was defined by years of intense scrutiny. It began in August 2020 with an executive order from President Trump aimed at banning transactions with ByteDance. The situation evolved through various stages, including a temporary block by a U.S. judge and a subsequent legal challenge filed by TikTok against the government, where the company argued that a ban would infringe upon First Amendment rights.
By 2024, the strategy shifted toward a forced sale. A wide range of high-profile entities and individuals vied for a stake in the company, including:
- The People’s Bid for TikTok: A consortium led by Frank McCourt, supported by figures like Alexis Ohanian and Kevin O’Leary.
- American Investor Consortium: Led by Jesse Tinsley and including David Baszucki and MrBeast.
- Other Bidders: Amazon, AppLovin, Perplexity AI, Rumble, Bobby Kotick, and Steven Mnuchin.
With the divestment now finalized, the focus shifts to the TikTok USDS Joint Venture to maintain the app’s functionality while adhering to the strict security oversight of its new American partners.