TikTok has signed a joint venture agreement with a group of investors in a move aimed at ending the long-running threat of a ban in the United States, capping months of intense negotiations over the platform’s Chinese ownership and data security concerns.
The agreement, confirmed on Thursday, is expected to allow the hugely popular video-sharing app to continue operating in the US, where TikTok says it has more than 170 million users, making the country its single largest market.
According to an internal memo seen by AFP, TikTok’s Chief Executive Officer, Shou Chew, informed employees that the company and its Chinese parent firm, ByteDance, had agreed to establish a new joint venture entity designed to address US national security and regulatory concerns.
Under the deal, major investors include Oracle, Silver Lake, and Abu Dhabi-based investment firm MGX, all of whom are expected to play key roles in the new ownership and governance structure.
While full details of the equity arrangement were not disclosed, sources familiar with the talks say the joint venture is structured to reduce ByteDance’s direct control over TikTok’s US operations a central demand of American lawmakers and regulators.
Oracle, which has already partnered with TikTok on US data storage and security under previous arrangements, is expected to deepen its involvement, particularly in overseeing data protection, cloud infrastructure, and compliance mechanisms.
The joint venture marks a major breakthrough in a dispute that has spanned multiple US administrations.
For years, US officials have raised concerns that TikTok’s Chinese ownership could allow Beijing access to sensitive user data or influence content on the platform allegations TikTok and ByteDance have repeatedly denied.
The pressure intensified after Washington passed legislation threatening to ban TikTok nationwide unless it divested from ByteDance or restructured its ownership to eliminate perceived national security risks.
The new deal appears designed to meet those legal requirements, potentially averting a ban that would have disrupted millions of creators, businesses, and advertisers who rely on the platform.
With more than 170 million users in the United States, TikTok has become a dominant force in digital culture, influencing music, fashion, politics, and commerce.
The platform has also grown into a major economic engine, supporting:
1. Small businesses and online entrepreneurs
2.Content creators and influencers
3.Advertising and media industries
Analysts say a US ban would have had far-reaching consequences not only for TikTok, but also for the broader creator economy, potentially reshaping the social media landscape.
While the joint venture significantly lowers the risk of an outright ban, experts caution that regulatory scrutiny is unlikely to disappear entirely.
US authorities are expected to closely monitor the new entity’s:
1. Ownership structure
2. Data handling practices
3. Content moderation policies
4. Independence from ByteDance
Any perceived breach could reopen political and legal challenges.
Still, industry observers say the agreement represents TikTok’s strongest position yet in its battle to remain operational in the US.
Beyond the United States, the deal could set a precedent for how global tech firms navigate geopolitical tensions, particularly as governments worldwide tighten rules around data sovereignty and foreign ownership of digital platforms.
For ByteDance, the agreement signals a willingness to compromise to protect TikTok’s most lucrative market, even as it continues to expand across Europe, Latin America, Africa, and Southeast Asia.
