After months of uncertainty and legal battles, TikTok has finally sealed a deal to establish a new American entity, ensuring its continued operation in the United States. The agreement, which involves the creation of a majority American-owned venture, has been finalized by ByteDance, TikTok’s Chinese owner, with key investors including Larry Ellison’s Oracle, private-equity group Silver Lake, and Abu Dhabi’s Mubadala Investment Company.
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This move comes as a significant development following the Trump administration’s attempts to ban the popular social media platform over national security concerns. The deal not only allows TikTok to sidestep a potential ban but also marks a strategic shift towards greater American ownership and control over the app’s operations within the country.
According to reports from sources like ABC News, WANE, and The Guardian, the newly formed U.S. entity, named TikTok USDS Joint Venture LLC, will be majority-owned by American investors, with over 80% ownership stake. This shift in ownership structure aims to address regulatory concerns and ensure compliance with U.S. laws and regulations, thereby safeguarding the app’s future in the American market.
The establishment of this American entity is a significant step towards resolving the long-standing legal battle between TikTok and the U.S. government. By creating a more independent and locally controlled operation, TikTok aims to allay concerns regarding data privacy, security, and potential foreign influence, thereby securing its position in the U.S. social media landscape.
As TikTok finalizes this deal, it sets a precedent for other foreign-owned tech companies operating in the U.S. to reevaluate their ownership structures and establish greater transparency and accountability to maintain regulatory compliance and public trust.
In conclusion, TikTok’s successful negotiation of this deal to operate in the U.S. under a new American entity marks a pivotal moment in the app’s history. By prioritizing American ownership and control, TikTok aims to navigate the complex regulatory landscape and ensure its continued presence in the U.S. market, setting a new standard for ethical and transparent operations in the tech industry.
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References:
1. ABC News: https://abcnews.go.com/Business/tiktok-finalizes-deal-operating-us/story?id=129475609
2. WANE: https://www.wane.com/top-stories/tiktok-finalizes-deal-creates-us-venture/
3. The Guardian: https://www.theguardian.com/us-news/2026/jan/22/tiktok-us-venture-oracle
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