Inside TikTok’s deal with US investors to save its American operations
TikTok has secured its future in the United States after striking a deal with American investors to restructure its US operations, allowing the popular video app to avoid a looming ban.
The agreement, finalised on January 23, creates a new US-based entity called TikTok USDS Joint Venture LLC, which will oversee key parts of TikTok’s American business. The move comes after years of pressure from US lawmakers who raised national security concerns over TikTok’s Chinese parent company, ByteDance.
Why TikTok faced a ban
In 2024, the US Congress passed legislation requiring ByteDance to sell TikTok or face a nationwide ban. Lawmakers argued that Chinese ownership posed risks of data misuse and potential government interference, claims TikTok has repeatedly denied.
Although the ban was initially set to take effect in early 2025, deadlines were extended several times as negotiations continued behind the scenes.
What the deal changes
Under the new arrangement, parts of TikTok’s US operations have been transferred to American partners, including technology company Oracle and private equity firm Silver Lake. The structure gives US investors a larger role in governance and oversight, addressing Washington’s concerns about control and data security.
TikTok’s global chief executive, Chew Shou Zi, will continue to run the company worldwide and will also sit on the board of the new US entity.
CEO thanks users
Hours after the deal was completed, Chew posted a video on TikTok thanking users for their support. Without directly referencing the agreement, he expressed gratitude to the platform’s more than one billion users worldwide and 200 million users in the United States.
“We are grateful to have you as part of our TikTok community,” Chew said, adding that he looked forward to seeing more creativity and storytelling on the platform.
The deal allows TikTok to continue operating in the US while meeting legal requirements set by Congress.
This story is written and edited by the Global South World team, you can contact us here.
