ByteDance to offload 80% of TikTok’s US assets to dodge ban
The newly established entity will be named TikTok USDS Joint Venture LLC, with American and global investors including Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX holding a combined 80.1 percent stake, while ByteDance will retain a 19.9 percent ownership interest. In September, Vice President JD Vance said the new US company would be valued at about $14 billion, below analyst expectations. The agreement is expected to be finalized on January 22. The White House has said the joint venture will oversee TikTok’s US application, though questions remain about ByteDance’s continued involvement and its ongoing business relationship with the new entity.
TikTok CEO Shou Zi Chew told employees that the joint venture would operate as an independent entity with authority over US data protection, algorithm security, content moderation, and software assurance, according to a memo. Chew added that TikTok’s global US entities would separately manage global product interoperability and certain commercial operations, including e-commerce, advertising, and marketing. Despite these assurances, skepticism remains among some US officials and analysts over the true extent of independence from ByteDance.
Rush Doshi said it is still unclear whether TikTok’s algorithm has been transferred, licensed, or remains controlled from China, with Oracle potentially limited to a monitoring role. Chinese reports in September suggested ByteDance would retain a significant operational role, while other report says that ByteDance plans to establish a US TikTok entity that would generate some revenue from the joint venture, according to the report.
Under the terms of the agreement, ByteDance will appoint one of seven board members, though Americans will hold the majority of seats. Oracle will act as the “trusted security partner,” responsible for auditing and compliance, and TikTok said Oracle would safeguard US user data in a secure cloud environment based in the United States. President Donald Trump, who has a close relationship with Oracle CEO Larry Ellison, previously said investors such as Michael Dell and Rupert Murdoch would be involved, though their participation remains unclear. Republican Representative John Moolenaar, chair of the House Select Committee on China, has said he plans to call the new TikTok leadership to testify in Congress in 2026. Even if finalized, scrutiny over control, data security, and Chinese influence is expected to continue after the joint venture begins operations.
