TikTok finalizes deal to form new U.S. entity to avoid ban

January 23, 2026

TL;DR

TikTok has established a new U.S.-based joint venture to operate its services for American users.
U.S. investors, including Oracle and Silver Lake, will own a majority stake (45%), with ByteDance retaining 19.9%.
The new entity will implement safeguards for data protection, algorithm security, and content moderation.
The deal was approved by both China and the U.S. government.
Concerns persist among lawmakers regarding the extent of separation from ByteDance and potential CCP influence.
Previous plans, like Project Texas, were deemed inadequate by the U.S. government.
The law required ByteDance to sever ties with TikTok's U.S. operations or face a ban from U.S. app stores by January 19, 2025.

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