TikTok's Chinese parent company, ByteDance, has finalized a deal to create a majority American-owned joint venture aimed at securing U.S. user data and preventing a nationwide ban of the popular short-video app, which has more than 200 million users in the United States.
The agreement marks a major turning point in TikTok's long-running standoff with U.S. authorities, which began in August 2020 when former President Donald Trump first sought to ban the platform over national security concerns. A law passed in April 2024 later required ByteDance to divest its U.S. TikTok assets or face a ban, a measure that was upheld by the Supreme Court. Trump ultimately opted not to enforce the ban after the deal took shape.
Under the agreement, TikTok USDS Joint Venture LLC will be responsible for securing U.S. user data, applications and recommendation algorithms through enhanced privacy and cybersecurity measures. While ByteDance disclosed limited details, the ownership structure gives American and global investors a combined 80.1 stake, with ByteDance retaining 19.9.
