ByteDance, TikTok’s Chinese parent company, has signed binding agreements with three major investors to establish a U.S. joint venture, a move aimed at meeting national security requirements and averting a potential government ban, Reuters reported.

The agreement builds on a framework agreed in September 2025, which outlined conditions for American control over U.S. operations while allowing ByteDance to retain a minority stake.

Under the deal, American and global investors will hold 80.1 percent of the new entity, with ByteDance retaining 19.9 percent. Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively hold 45 percent. The new venture, TikTok USDS Joint Venture LLC, will operate independently with authority over U.S. data protection, algorithm security, content moderation, and software assurance.

TikTok chief executive Shou Zi Chew said the arrangement allows Americans to continue using the platform while maintaining a “vital global community.” TikTok’s global operations will continue to oversee certain commercial activities, including e-commerce, advertising, and product interoperability.

The agreement follows a 2024 U.S. law requiring ByteDance to divest its U.S. assets by January 19, 2026, unless compliance measures were met. Enforcement had been delayed multiple times, allowing negotiations under the September framework. Oracle will serve as the “trusted security partner,” responsible for auditing compliance and safeguarding sensitive U.S. user data in a domestic cloud environment.

Political reactions have been mixed. Democratic Senator Elizabeth Warren criticised the deal as a “billionaire takeover,” raising concerns over private influence on content. Analysts expect the transaction to proceed smoothly through regulatory review, citing the federal government’s involvement in structuring the venture.

The U.S. joint venture, scheduled to close on January 22, 2026, represents a pivotal step in resolving years of uncertainty over TikTok’s American operations while balancing regulatory scrutiny with continued access to one of the world’s largest digital markets.