Washington: TikTok has confirmed that a new entity, TikTok USDS Joint Venture LLC, has been established to run its business in the United States, serving more than 200 million
American users and around 7.5 million businesses. TikTok has stated that the move is designed to strengthen trust, enhance operational independence, and ensure tighter safeguards around data protection, cybersecurity, content moderation, and the recommendation algorithm that powers the platform.
TikTok has structured the joint venture so that US and international investors collectively hold 80.1 percent of the company, while ByteDance, the Chinese parent firm, has retained a 19.9 percent stake.
This ownership balance has been aimed at meeting legislative requirements that demanded reduced Chinese control of the platform’s US operations. The change has followed years of scrutiny over potential national security risks associated with foreign ownership and access to sensitive user data.
TikTok has confirmed that major investors include Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment group MGX, each holding a 15 percent stake. Additional shares have been allocated to other investment groups such as the Dell Family Office, Alpha Wave Partners, Revolution, and NJJ Capital.
This broad ownership base has been designed to provide financial stability and institutional oversight while reinforcing the platform’s independence from ByteDance. TikTok has explained that the joint venture will operate as an independent company overseen by a seven-member board, with a majority of directors drawn from the United States.
This governance structure has been introduced to increase transparency and ensure compliance with US regulatory standards. Adam Presser has been appointed as chief executive of the US business, with responsibility for safeguarding American user data and supporting long-term growth across TikTok and its related services.
TikTok has been under political pressure since 2020, when former president Donald Trump attempted to block the platform over national security concerns. More recently, legislation passed under former president Joe Biden required ByteDance to divest its US business or face a potential ban in TikTok’s largest market.
The formation of this joint venture has directly addressed those legal and political demands. TikTok has positioned the new structure as a solution that balances operational continuity with regulatory compliance.
The platform has highlighted that the new safeguards will reinforce data sovereignty and prevent unauthorised access while allowing TikTok to continue operating as a major digital platform for creators, advertisers, and businesses in the United States. This development has marked a significant turning point in TikTok’s relationship with US regulators and policymakers.
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