TikTok’s US ownership deal explained: Who owns it now and what it means for users

TikTok

• TikTok USDS Joint Venture LLC now controls TikTok's US operations
• ByteDance's stake in TikTok US cut to under 20 percent, meeting US demands
• Oracle, Silver Lake, and MGX each hold 15 percent of TikTok US

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On January 22, 2026, TikTok confirmed that TikTok USDS Joint Venture LLC had been formally established. This move follows an executive order signed by President Donald Trump approving the sale of TikTok’s US operations to an American-led investor group. As a result, ByteDance’s ownership has been reduced to below 20 percent, meeting long-standing US demands to limit Chinese control over the platform.

Who owns TikTok in the US now

Under the new structure, roughly 80 percent of TikTok’s US business is now owned by non-Chinese investors, with ByteDance retaining just under a 20 percent stake. The managing investor group consists of Oracle, private equity firm Silver Lake, and investment firm MGX, each holding a 15 percent share. Together, they control 45 percent of the venture. The remaining 35 percent is held by other investors, many of whom were already ByteDance backers, including the Dell Family Office, Vastmere, Alpha Wave Partners, and several others named in TikTok’s official announcement. The US operation is estimated to be valued at around $14 billion.

What TikTok USDS will control

The newly created TikTok USDS Joint Venture LLC will oversee the platform’s US operations, including data protection, content moderation, algorithm security, and software assurance. Oracle has been appointed as the trusted security partner and will be responsible for hosting US user data, auditing compliance with national security requirements, and ensuring that ByteDance has no access to sensitive information. TikTok has stated that ByteDance will not have access to US user data and will have no influence over how the US algorithm operates.

What happens to the algorithm

The algorithm has been at the centre of US government concerns for years. Under the deal, the US entity will be allowed to lease the algorithm from ByteDance, while Oracle will replicate, secure, and retrain a US-specific version. This arrangement is intended to prevent any foreign influence over content recommendations while allowing TikTok to continue operating without forcing a complete rebuild of the platform.

What this means for US users

For most users, the changes are unlikely to be immediately noticeable. TikTok has said that Americans will not need to download a new app, and the service will continue to be available through the App Store and Google Play. It remains unclear whether algorithmic recommendations will change in any visible way, though oversight and governance will now sit firmly with the US-based entity.

How TikTok became a 'US company'

TikTok’s conflict with the US government began in August 2020, when President Trump signed an executive order targeting ByteDance over national security concerns. Attempts to force a sale followed, with companies such as Microsoft, Oracle, and Walmart entering early talks. Legal challenges stalled those efforts, and the situation evolved further under the Biden administration after Congress passed legislation targeting TikTok’s ownership structure. ByteDance consistently denied posing a security risk and argued that a ban would violate the First Amendment rights of US users.

By 2024 and 2025, negotiations intensified again, with Trump proposing a shared ownership model and multiple investor groups submitting bids. After several deadline extensions and mounting pressure, TikTok signed a partial divestment deal in December 2025, paving the way for the formation of TikTok USDS in early 2026.

The bigger picture

The agreement brings a degree of stability to TikTok’s operations in its largest international market, home to roughly 200 million users. At the same time, it reflects how deeply geopolitics now shape major consumer platforms. TikTok remains available in the US, but under an ownership and governance model designed as much for national security concerns as for social media growth.