This move marks a turning point for TikTok, which has been under heavy political and legal pressure for years. Back in August 2020, then President Donald Trump attempted to ban the app, citing fears that user data could be accessed by the Chinese government.

Under the new deal, American and global investors will hold a controlling 80.1 percent stake, while ByteDance will retain a minority ownership of 19.9 percent. This ownership structure is meant to ensure greater transparency and reduce foreign influence over US operations.

The joint venture’s key investors include Oracle, private equity firm Silver Lake, and Abu Dhabi based investment company MGX. Each of these investors will own a 15 percent share, giving the venture strong backing from both technology and financial heavyweights.

According to TikTok, the new structure will place US user data and core algorithms under strict protection. All sensitive data will be stored within Oracle’s US based cloud infrastructure, and the venture will be responsible for retraining, testing, and updating the algorithm used for American users.

While the joint venture will manage TikTok’s back end operations, ByteDance will continue to control revenue generating activities, including advertising and e-commerce. In return, the venture will earn a share of revenue by providing technology and data-related services.

Former TikTok US Data Security (USDS) executives Adam Presser and Will Farrell have been appointed as Chief Executive Officer and Chief Security Officer, respectively. The USDS unit was specifically created to safeguard American user data and address government concerns.

TikTok’s global CEO, Shou Chew, has also joined the board of directors of the new venture, reinforcing the company’s commitment to balancing global growth with local compliance.

Overall, this agreement signals TikTok’s effort to turn controversy into cooperation, offering a practical solution to one of the most high-profile tech disputes of recent years.