As TikTok prepares to finalize its US operations, the formation of TikTok USDS Joint Venture LLC is set to take place next month. This new organization will be co-owned by Oracle, Silver Lake, and MGX, with these investors holding a combined 50% stake. ByteDance's existing investors will hold 30.1%, while ByteDance itself retains 19.9% of the venture.
CEO Shou Zi Chew has communicated to employees that this entity will manage its own algorithm, specifically designed to utilize U.S. user data and minimize external influence on content feeds. The joint venture will also handle moderation and software assurance for the platform.
TikTok has navigated a challenging path towards this agreement, previously facing a ban in January and undergoing numerous negotiations since then. The latest deadline for the deal’s completion is set for January 22, 2026, following the expiration of an extension earlier this week.