TikTok has announced that it has closed the deal that establishes a majority American-owned joint venture, complying with and Executive Order signed by President Trump on September 25, 2025, thus allowing the app to continue operating in the United States.
The deal was first agreed to in December and creates “TikTok USDS Joint Venture LLC,” which sets up an 80.1% piece of the deal owned by U.S. and global investors, with ByteDance holding on to a 19.9% stake. Oracle, Silver Lake, and Abu Dhabi-based MGX each hold 15% as managing investors. The Dell Family Office and affiliates of Susquehanna International Group are also shareholders.
Both the U.S. and Chinese governments have signed off on the arrangement.
President Trump posted on social media that he was “so happy to have helped in saving TikTok,” thanking Chinese President Xi Jinping “for working with us and, ultimately, approving the Deal.”
A seven-member, majority-American board of directors will operate the new venture, with Adam Presser, formerly TikTok’s general manager and global head of operations, as CEO of the joint venture. TikTok’s global chief executive Shou Zi Chew will also serve on the board.
The venture will handle U.S. data protection, content moderation, and algorithm security. TikTok’s recommendation algorithm will be retrained exclusively on U.S. user data and will be stored within Oracle’s cloud infrastructure. Oracle will also review and validate TikTok’s source code.
The Protecting Americans From Foreign Adversary Controlled Applications Act, which went into effect on January 19, 2025, required TikTok to be sold to a non-Chinese company, and ByteDance was given nine months in which to do so. However, the company chose to appeal the ruling instead of searching for buyers. ByteDance argued the law was unconstitutional, as it violated the First Amendment. Supreme Court rejected that argument, saying that as a Chinese company, ByteDance does not have First Amendment rights.
The law was upheld by the Supreme Court in January 2025, although President Trump has extended the deadline multiple times since then to let the negotiations continue.
