President Donald Trump signed an executive order in the Oval Office implementing plans for the social media and video streaming platform TikTok.
TikTok announced Thursday that it has entered into a historic deal to create a majority-American-owned joint venture. This is a move aimed at avoiding a possible US ban on the popular social media app.
The deal is a major milestone for TikTok, and comes after years of legal and political battles that began in 2020. President Donald Trump Raised national security concerns about Chinese-owned platforms.
Built on the foundation of the TikTok US Data Security (USDS) organization, the joint venture LLC will meet U.S. regulatory requirements set by President Trump’s executive order last September 25, allowing millions of U.S. users and businesses to continue operating on the platform.
“I’m so happy to help save TikTok! TikTok is now owned by the largest group of great American patriots and investors in the world and will be an important voice,” President Trump said in a Thursday post on Truth Social.
TIKTOK reaches agreement on new US joint venture, expected to be completed in 2026
Approximately 200 million Americans and 7.5 million businesses are active on TikTok. (Photo: Fabian Sommer/dpa (Photo by Fabian Sommer/picture Alliance via Getty Images) / Getty Images)
“Today, pursuant to an executive order signed by President Trump on September 25, 2025, the TikTok USDS Joint Venture LLC was established, enabling more than 200 million Americans and 7.5 million businesses to continue discovering, creating, and thriving as part of TikTok’s vibrant global community and experiences,” the company added.
The company added that TikTok’s sister apps, such as CapCut and Lemon8, will also be under the joint venture’s U.S. oversight.
Under the TikTok deal, the U.S. company will own 80.1% of the new joint venture, while the original parent company ByteDance will own 19.9%.
3 companies including cloud computing giant oraclePrivate equity groups Silver Lake and Abu Dhabi-based MGX will be managing investors, each holding a 15% stake.
President Trump signs executive order allowing TikTok deal to proceed
President Donald Trump speaks in the White House Rose Garden on Monday, June 1, 2020 in Washington. ((AP Photo/Patrick Semanski))
The venture will build a domestic cloud environment under Oracle through robust data privacy and cybersecurity measures to protect U.S. user data, apps and algorithms, the company said.
“Content recommendation algorithms will be secured in Oracle’s US cloud environment,” the company said.
A sign is posted on a building at the Oracle Corp. corporate campus on Monday, March 14, 2016, in Redwood City, California. (Michael Short/Bloomberg via Getty Images/Getty Images)
The new organization is governed by a seven-member board of directors, a majority of whom are American, including representatives from major investment and technology companies.
Adam Presser has been appointed chief executive officer of the new joint venture. Other company representatives on the board include TikTok CEO Shou Chew, Kenneth Glueck of Oracle, Egon Durban of Silver Lake, and David Scott of MGX.
The joint venture will be designed to allow U.S. users to maintain a “global service.” TikTok experience” allows creators to be discovered around the world while allowing American companies to maintain control over commercial activities such as e-commerce, advertising, and marketing.
