TikTok Secures Future in U.S. with New Joint Venture

By BARBARA ORTUTAY, AP Technology Writer

In a move to ensure its continued operation in the United States, TikTok has signed agreements with major investors Oracle, Silver Lake, and MGX to form a new TikTok U.S. joint venture.

The deal is set to close on Jan. 22, according to an internal memo seen by The Associated Press. CEO Shou Zi Chew expressed gratitude to employees for their dedication and hard work, emphasizing the importance of focusing on delivering for users, creators, businesses, and the global TikTok community.

The new TikTok U.S. joint venture will be shared among investors such as Oracle, Silver Lake, and MGX, with ByteDance and its affiliates also holding stakes. The venture will have a majority-American board of directors and will prioritize protecting Americans’ data and national security.

Under the agreement, U.S. user data will be stored locally by Oracle, ensuring a seamless experience for users and advertisers. The TikTok algorithm will be retrained on U.S. user data to prevent outside manipulation, and the U.S. venture will oversee content moderation and policies within the country.

This deal marks the end of uncertainty surrounding TikTok’s future in the U.S., following legislative efforts to ban the platform unless it found a new owner. President Donald Trump’s executive orders extended deadlines for a TikTok deal, ultimately leading to the formation of the new joint venture.

TikTok’s popularity in the U.S., with over 170 million users, underscores its importance as a source of news and entertainment for a significant portion of the population.

Shares of Oracle saw a 5% increase in after-hours trading following the announcement of the deal.