TIKTOK has announced the creation of a US joint venture, TikTok USDS Joint Venture LLC, backed largely by US investors, a move described as enabling the company to continue operating in the United States. The deal is valued at about $14 billion, and three managing investors—Oracle, Silver Lake, and MGX—each hold 15% of the new business.
Original owner ByteDance retains 19.9%, with a further 30% to be owned by affiliates of existing ByteDance investors, according to an internal memo released before the deal was officially announced. The arrangement designates Oracle as the “trusted security partner” for data protection and compliance auditing, and US user data are expected to be stored in Oracle’s cloud environment, with security frameworks aligned to the NIST Cybersecurity Framework.
This comes after years of regulatory pressure, including a 2025 deadline set by PAFACA for ByteDance to divest or face a nationwide ban, and a period when TikTok briefly went dark in January 2025. Elsewhere, Canada’s Federal Court recently overturned a TikTok shutdown order in Canada, as the company pursues over‑the‑border reviews of its operations.