ByteDance, the Chinese owner of TikTok, announced that it has signed binding agreements with three major investors to form a U.S.-based joint venture, a key step in ensuring TikTok’s continued operation in the United States and addressing longstanding national security concerns. This move aims to avoid a potential ban after years of regulatory scrutiny, dating back to August 2020 when former President Donald Trump first attempted to block the app.
The agreement establishes that American and global investors will hold an 80.1% stake in the new TikTok U.S. joint venture, while ByteDance retains 19.9%. TikTok CEO Shou Zi Chew emphasized that the U.S. entity will operate independently, with full authority over data protection, content moderation, algorithm security, and software assurance to safeguard user information.
Although ByteDance will keep a minority stake, its global entities will continue to manage interoperability with TikTok’s global platform and oversee commercial operations, including e-commerce, advertising, and marketing. The deal represents a major milestone for TikTok, which is used regularly by more than 170 million Americans, and reflects efforts to comply with U.S. divestiture requirements enacted under a 2024 law.
While the White House has welcomed the arrangement, some questions remain regarding oversight and operational independence, but the formation of the joint venture is expected to provide regulatory clarity and allow TikTok to maintain its U.S. presence.
