TikTok Finalizes U.S. Joint Venture to Secure App's Operations

TikTok USDS Joint Venture LLC has officially been established as part of the restructuring of TikTok's U.S. operations. The new entity allows TikTok, along with ByteDance-owned apps like CapCut and Lemon8, to continue operating in the United States for its estimated 200 million users and 7.5 million businesses.



The formation of this majority American-owned venture satisfies the national security mandates laid out in the Executive Order signed by President Trump on September 25, 2025. It follows reports from late last year that TikTok had signed a deal to divest its U.S. operations to avoid a nationwide ban. Under the finalized agreement, ByteDance retains a 19.9 percent minority stake. Three managing investors—Oracle, Silver Lake, and MGX—each hold a 15 percent share, while the remaining equity is split among a consortium that includes the Dell Family Office, NJJ Capital, and affiliates of Susquehanna International Group and General Atlantic.


The Joint Venture's primary mandate is isolating and securing the U.S. content ecosystem. All U.S. user data will now reside within Oracle's secure U.S. cloud environment, protected by a privacy program audited by third-party cybersecurity experts. Beyond simple data storage, the group is tasked with retraining and testing the content recommendation algorithm specifically for the U.S. market. This is intended to ensure the code that drives the "For You" feed is operated and reviewed within U.S.-controlled security frameworks. Oracle will serve as the Trusted Security Partner, assisting in ongoing software assurance protocols to validate source code.

Governance of the venture is handled by a seven-member board of directors featuring an American majority. The board includes TikTok CEO Shou Chew, Oracle Executive Vice President Kenneth Glueck, Silver Lake Co-CEO Egon Durban, and DXC Technology CEO Raul Fernandez, who serves as Chair of the Security Committee. To run daily operations, the board has appointed Adam Presser as Chief Executive Officer and Will Farrell as Chief Security Officer.

While the new entity takes control of trust and safety policies, content moderation, and security protocols, the user experience is expected to remain seamless. TikTok's global entities will continue to handle product interoperability, ensuring American users can still connect with the global community. TikTok's global entities will continue to manage certain commercial activities, including advertising, marketing, and e-commerce. The new security framework is designed to meet major industry standards, including NIST and ISO certifications.

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