MW TikTok forms joint venture to keep operating in U.S., ending yearslong saga
By Mike Murphy
TikTok said Thursday its U.S. users' data would be protected by Oracle's secure cloud
TikTok said late Thursday it has finalized a long-awaited deal that will allow the popular video-sharing app to keep operating in the U.S.
TikTok said a joint venture has been established for its U.S. operations, complying with an executive order signed by President Donald Trump in September.
TikTok is controlled by a Chinese parent company, ByteDance, and the wildly popular video-sharing platform faced a U.S. ban this week in the absence of a deal. The joint venture will operate as an "independent entity," TikTok said.
In a statement, the company said its U.S. users' data would be protected by Oracle's secure cloud, which will also maintain its algorithm and software security. Oracle shares $(ORCL)$ rose 2.5% on Thursday on rumors of the pending announcement.
"TikTok USDS Joint Venture's mandate is to secure U.S. user data, apps and the algorithm through comprehensive data privacy and cybersecurity measures," the company said. "It will safeguard the U.S. content ecosystem through robust trust and safety policies and content moderation while ensuring continuous accountability through transparency reporting and third-party certifications."
The new structure leaves ByteDance with just under 20% of the U.S. business, with 15% stakes going to Oracle, Silver Lake and MGX, which is a state-owned investment firm in the United Arab Emirates. Other investors include Michael Dell's family office.
Adam Presser, formerly TikTok's head of operations, was named CEO of the new joint venture. TikTok CEO Shou Chew will join the new company's seven-member, majority American, board of directors, which will also include Oracle executive Kenneth Glueck, TPG Global adviser Timothy Dattels, Susquehanna managing director Mark Dooley and Silver Lake co-CEO Egon Durban.
TikTok has been the subject of national-security concerns for years, including worries that the Chinese government could access U.S. users' data or push propaganda into their feeds.
In April 2024, former President Joe Biden signed a bipartisan law that required ByteDance to divest its U.S. business or face a ban. Trump had directed his administration to not enforce the ban numerous times, with analysts questioning the legality of those moves.
Rob Schroeder contributed to this report.
-Mike Murphy
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(END) Dow Jones Newswires
January 22, 2026 20:51 ET (01:51 GMT)
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