A new chapter for TikTok in the United States is set to begin as a group of American investors, partnering with the Abu Dhabi-based firm MGX, prepares to assume control of the platform’s US operations. The TikTok USDS Joint Venture LLC will formally take the reins on January 22, 2026. This move follows years of political pressure and legal mandates aimed at separating the American segment of TikTok from its Chinese parent company, ByteDance. Industry observers believe this agreement will shape US social media governance, influencing both the user experience and business strategies. Data protection and content moderation policies are expected to be under stricter American oversight after the transition.
Previously, discussions and reports indicated that TikTok’s fate in the US was uncertain, with potential outcomes ranging from an outright ban to a forced sale to American companies. Past negotiations saw firms like Oracle and Walmart involved, but no definitive structure was agreed upon until recently. Earlier plans focused heavily on safeguarding national security through potential data localization and algorithmic transparency. Recent softening of diplomatic tensions between the US and China appears to have enabled a more structured partnership and smoother transition, compared to earlier turbulent exchanges and public debates.
What Will the New Ownership Structure Look Like?
Ownership of TikTok’s US operations will be divided among several stakeholders. Oracle Corporation, Silver Lake, and MGX collectively will control 45% of the company, with an additional 5% allocated to new unidentified investors. ByteDance will retain a 19.9% share, while the remaining 30.1% will be managed by affiliates of ByteDance’s existing investors. This arrangement creates a blend of American, Middle Eastern, and Chinese interests in the restructured entity and establishes a foundation for future decision-making processes in the company.
How Are User Data and Content Moderation Being Addressed?
Oracle, already serving as TikTok’s cloud provider, is set to oversee data protection for American users. New agreements require that the content recommendation algorithm be retrained using US user data, a method aimed at reducing risks of outside interference in content distribution. The joint venture also secures full decision-making authority over content moderation and related policies within the United States.
“With these agreements in place, our focus must stay where it’s always been—firmly on delivering for our users, creators, businesses and the global TikTok community,”
stated TikTok CEO Shou Zi Chew in a memo to staff, reflecting the platform’s emphasis on reliability and transparency.
Why Is This Restructuring Taking Place Now?
Heightened concerns over national security and data privacy led US lawmakers to require ByteDance to cede its control or risk TikTok’s discontinuation in the American market. Legal measures, including the “Protecting Americans from Foreign Adversary Controlled Applications Act,” prompted the recent agreement. Ongoing negotiations had faced multiple extensions as both governments and interested companies sought a mutually acceptable solution. Despite the move, some US lawmakers remain skeptical, raising questions about the effectiveness of the new structure in safeguarding user privacy and the independence of TikTok’s US content.
The intricacies of this deal illustrate the complex relationship between technology, policy, and international business. While some, such as Senate Democrat Ron Wyden, doubt the agreement’s effectiveness in fully protecting US user information and the content algorithm, others view it as a diplomatic effort to balance strategic interests and technological leadership.
“Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the US and around the world.”
As American investors prepare to guide TikTok’s US operations, ongoing scrutiny is expected, particularly regarding user data management and content neutrality. Users and stakeholders should pay close attention to how these policy changes materialize in day-to-day platform operations, and businesses relying on TikTok should be prepared for potential shifts in policies and practices as American ownership asserts its influence over the popular video-sharing app.
