TikTok Finds a Way to Stay in America as Joint Venture Deal Reshapes Its Future

TikTok Finds A Lifeline In The US

For millions of Americans who scroll TikTok daily, the threat of the app disappearing has felt both distant and oddly persistent. This week, TikTok took a decisive step to quiet that uncertainty, signing a joint venture deal that would allow it to keep operating in the United States while addressing long-standing political concerns over Chinese ownership.

The agreement, revealed through an internal company memo, marks a major shift in how TikTok will operate in its biggest market and signals a rare compromise between Washington, Beijing and Silicon Valley power players.

A New Company With American Control

At the heart of the deal is the creation of a new US-based joint venture involving TikTok’s parent company ByteDance and a group of powerful investors. Oracle, Silver Lake and Abu Dhabi-based MGX will each hold 15 percent of the new entity, collectively owning half of the business.

Affiliates of existing ByteDance investors will control just over 30 percent, while ByteDance itself will retain just under 20 percent. That figure is not accidental. It is the maximum ownership a Chinese company is allowed under the US law that threatened to ban TikTok outright.

TikTok CEO Shou Chew told staff that the new US venture will take responsibility for data protection, algorithm security, content moderation and software assurance for American users. In plain terms, TikTok is handing over the keys to its most sensitive operations to a structure designed to satisfy US lawmakers.

Why Washington Has Been Nervous About TikTok

The pressure on TikTok has been building for years. US policymakers, across party lines, have argued that TikTok’s Chinese ownership could allow Beijing to access American user data or influence public opinion through the app’s powerful recommendation algorithm.

Those fears culminated in a law passed under former president Joe Biden that required ByteDance to sell TikTok’s US operations or face a ban. While Donald Trump has repeatedly delayed enforcement through executive orders, the legal threat never fully disappeared.

The new joint venture appears to meet the requirements of that law, effectively putting TikTok’s US operations under American oversight without forcing a complete sale.

Larry Ellison’s Expanding Influence

One of the most talked-about names in the deal is Oracle founder Larry Ellison, a long-time ally of Trump. Ellison’s involvement goes beyond TikTok. He has recently partnered with Trump on major AI initiatives and has helped finance his son David’s takeover of Paramount, while also backing a high-profile bid for Warner Bros.

Online, reactions have been mixed. Some users joked that TikTok had simply swapped one powerful gatekeeper for another, while others welcomed the move as a practical solution that keeps the app alive. On social media platforms like X and Reddit, the dominant sentiment was relief rather than celebration.

What Changes For Users And Creators

For everyday TikTok users, the app will look the same. The bigger shifts are happening behind the scenes. TikTok’s US entities will now manage global product interoperability as well as commercial activities such as advertising, e-commerce and marketing.

Creators, especially those who rely on TikTok income, have largely welcomed the news. Many have lived with months of uncertainty about whether their primary platform could vanish overnight. This deal, while complex, offers stability at a time when digital livelihoods feel increasingly fragile.

The Bigger Picture

TikTok’s joint venture is more than a corporate reshuffle. It reflects how technology, politics and global power are now deeply intertwined. Few apps have become such a visible symbol of US-China tension, and fewer still have managed to survive it through compromise rather than confrontation.

There is still work to be done before the deal closes on January 22, and final approvals are required, including from Chinese authorities. But for now, TikTok has bought itself something invaluable in Washington. Time.

And for millions of users, that means the scrolling continues.

{Source:EWN}

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