Tiktok US Ban: TikTok strikes last-minute deal to keep US operations alive

TikTok on Thursday announced it has established a majority American-owned joint venture to operate its US business, enabling the company to avert a ban linked to its Chinese ownership.

After prolonged negotiations, the deal was finalised just one day ahead of the deadline set by US President Donald Trump and secures continued access for the platform’s nearly 200 million American users. According to a company press release, the restructuring will result in the creation of a new entity backed by a consortium of global investors alongside parent company ByteDance.

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As per an AFP report, Oracle, UAE-based investment firm MGX and private equity firm Silver Lake will each acquire a 15 per cent stake in the new venture, while ByteDance will retain a 19.9 per cent holding. The structure ensures majority American ownership of the US operations.

TikTok stated that the majority American-owned joint venture will operate under defined safeguards designed to protect national security through comprehensive data protections, algorithm security, content moderation and software assurances for US users. The company informed that TikTok USDS Joint Venture LLC will be responsible for safeguarding US user data, applications and the platform’s algorithm through strengthened data privacy and cybersecurity measures.

The company added that the new entity will serve more than 200 million users and 7.5 million businesses in the United States while implementing strict safeguards covering data protection, algorithm security and content moderation.

The restructuring addresses a law passed under former US President Joe Biden that required Chinese-owned ByteDance to divest TikTok’s US operations or face a ban in its largest market.

President Trump welcomed the agreement and claimed credit for facilitating the deal, while also thanking Chinese President Xi Jinping for approving it. Trump said on Truth Social that he was pleased to have helped save TikTok and stated that it would now be owned by a group of American investors. He also acknowledged Xi Jinping’s role in working with the US administration to approve the agreement.

TikTok further stated that the restructuring is expected to extend to other ByteDance-owned platforms operating in the United States, including CapCut and Lemon8.