TikTok’s U.S. Ownership Restructures to Avoid US Ban
19th Dec. 2025
ByteDance, the Chinese company that owns TikTok, has signed a binding agreements to rearrange it’s ownership of the app’s U.S. operations. This step is meant to comply with U.S. law that requires divestiture or face a national US ban.
Under this deal, a new U.S. focused company “TikTok USDS Joint Venture LLC” will be controlled mainly by American and international investors. Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX are named as principal new investors. Each is reported to take a 15% stake. Meanwhile, affiliates of existing ByteDance investors would hold about 30.1%, and ByteDance would keep 19.9%.
Why the TikTok deal matters and what it does not settle
The restructuring aims to meet the requirements of a 2024 U.S. law that requires apps owned by ByteDance to divest their U.S. businesses or face removal after a statutory deadline. The measure opened months of frantic negotiations in Washington and at the company. The agreement is intended to keep the app accessible to U.S. users and advertisers.
Reports say the transaction is expected to close in January 2026, with some outlets citing a target date in late January. Until regulators review governance documents and technical controls, questions will remain about whether the new structure truly insulates U.S. operations from influence by ByteDance or the Chinese state.
Reactions: relief, scepticism and scrutiny of TikTok deal.
For creators, advertisers and many users, the immediate result is continuity. The prospect of an enforced shutdown had prompted contingency planning across the industry. Yet lawmakers and security experts urged caution. They noted that ownership percentages matter less than governance, contractual safeguards and where algorithmic systems are trained or maintained. Regulators will likely probe those technical and legal layers closely.
Supporters of the deal argued it balanced national-security concerns with free-market access. Critics said selling stakes to wealthy investors does not by itself eliminate the underlying risks. Legal experts emphasised that enforceable, verifiable controls will determine whether the arrangement satisfies U.S. security tests.
What comes next
The companies involved must still disclose governance rules, board composition and technical boundaries. Regulators will examine whether the new venture truly severs operational control where it matters. If they are satisfied, the change should allow TikTok to remain widely available in the United States. If not, the law retains mechanisms to remove the app.
TikTok’s U.S. Ownership Restructures to Avoid US Ban
1. Reuters.com: China’s ByteDance signs deal to operate TikTok US app.
2. Theverge.com: The TikTok US sale is finally happening.
3. Moneycontrol.com: ByteDance agrees to sell majority of TikTok’s US assets.
4. News.sky.com: TikTok’s Chinese owner agrees deal to sell US business.