To avoid US TikTok ban, ByteDance forms joint venture transferring control to American investors

Chinese tech giant ByteDance has sealed the deal, constituting a joint venture to avoid facing a TikTok ban in the US.

The TikTok-parent company signed binding agreements to establish the alliance that will transfer control of TikTok's U.S. operations to American and global investors.

The development signals the resolution of long-running issues surrounding TikTok's operations in the US, which also led to the short-lived TikTok ban in the country in January.

These issues are linked to the tumultuous period that began in August 2020 when US President Donald Trump attempted to ban TikTok over national security concerns.

The new U.S. company, known as TikTok USDS Joint Venture LLC, will be valued at approximately $14 billion, with American investors—including Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX—holding an 80.1% stake, while ByteDance retains the remaining 19.9%.

Although TikTok CEO Shou Zi Chew has assured employees that the joint venture would function independently, managing U.S. data protection, algorithm security, and content moderation, concerns remain unresolved about whether the algorithm will remain under Chinese control.

The deal transferring TikTok's US operations to American investors will be finalised on January 22, bringing to fruition the efforts to address national security issues tied to ByteDance's ownership of TikTok.