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President Donald Trump signs an executive order in the Oval Office that puts into effect his plan for the social media and video streaming platform TikTok.
TikTok announced Thursday that it has finalized a historic deal to launch a majority American-owned joint venture, a move aimed at averting a potential U.S. ban on the popular social media app.
The deal marks a major milestone for TikTok, coming after years of legal and political battles that began in 2020, when President Donald Trump raised national security concerns about the Chinese-owned platform.
The Joint Venture LLC, built on the foundation of the TikTok U.S. Data Security (USDS) organization, will satisfy U.S. regulatory requirements established by Trump’s executive order on Sept. 25 of last year, allowing millions of American users and businesses to continue operating on the platform.
“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump said in a post on Truth Social Thursday.
TIKTOK REACHES AGREEMENTS ON NEW US JOINT VENTURE WITH CLOSING SET FOR 2026
Roughly 200 million Americans and 7.5 million businesses are active on TikTok. (Photo: Fabian Sommer/dpa (Photo by Fabian Sommer/picture alliance via Getty Images) / Getty Images)
“Today, TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025, now enabling more than 200 million Americans and 7.5 million businesses to continue to discover, create, and thrive as part of TikTok’s vibrant global community and experience,” the company added.
The company added that TikTok’s sister apps, such as CapCut and Lemon8, will also be brought under the joint venture’s U.S. oversight.
Under the TikTok agreement, American entities will hold an 80.1% stake in the new joint venture, with the original parent company ByteDance retaining 19.9%.
Three companies, including cloud computing giant Oracle, private equity group Silver Lake and Abu Dhabi-based MGX, will serve as managing investors, each holding a 15% stake.
TRUMP SIGNS EXECUTIVE ORDER ALLOWING TIKTOK DEAL TO PROCEED
President Donald Trump speaks in the Rose Garden of the White House, Monday, June 1, 2020, in Washington. ((AP Photo/Patrick Semansky))
The venture will establish a domestic cloud environment under Oracle, through robust data privacy and cybersecurity measures, to secure U.S. user data, apps and algorithms, the company said.
“The content recommendation algorithm will be secured in Oracle’s U.S. cloud environment,” the company said.
Signage is displayed on a building at the Oracle Corp. headquarters campus in Redwood City, California, U.S., on Monday, March 14, 2016. (Michael Short/Bloomberg via Getty Images / Getty Images)
The new entity is governed by a seven-member, majority-American board of directors, including representatives from major investment firms and technology companies.
Adam Presser has been appointed chief executive officer of the new joint venture. Other corporate representation on the board includes TikTok CEO Shou Chew, Oracle’s Kenneth Glueck, Silver Lake’s Egon Durban and MGX’s David Scott.
The Joint Venture will be designed to ensure that U.S. users retain a “global TikTok experience,” allowing creators to be discovered worldwide while allowing American entities to continue managing commercial activities such as e-commerce, advertising and marketing.
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