TikTok officially presents the new entity under which it will operate in the United States

It appears that we can finally bring to a close the lengthy and tortuous chapter of the conflict between the United States and TikTok. This dispute began in 2020 and, since then, has been marked by tension and numerous twists and turns, even resulting in a temporary nationwide “blackout”.

Today, January 23, 2026, the renowned Chinese social network issued a statement confirming the formation of TikTok USDS Joint Venture LLC, a new entity in which ByteDance, TikTok’s parent company, has transferred majority control to a group of American partners in order to meet the U.S. government’s national security requirements. As a result, ByteDance retains a 19.9% stake in the joint venture.

This development did not catch us off guard, given that in December 2025 news broke of the signing of agreements to establish this new entity. However, the scheduled closing date for the transaction was set for this month, January 2026, leaving room for any unforeseen changes (a common occurrence in this story).

A new era for TikTok in the U.S.

“Today, TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025, allowing over 200 million Americans and 7.5 million businesses to continue discovering, creating, and thriving as part of TikTok’s vibrant global community and experience.

The joint venture, which is majority U.S.-owned, will operate with defined safeguards that protect national security through comprehensive data protection, algorithm security, content moderation, and software assurances for U.S. users.” This is how the statement released by TikTok begins, which also outlines the measures that will be implemented to “protect U.S. user data,” as well as the composition of its board of directors.

As explained by the Chinese social network, TikTok USDS Joint Venture LLC will operate under a national security mandate designed to safeguard the digital integrity of the ecosystem in the United States. Its operations are based on technical transparency and accountability through regular reporting and third-party certifications. The fundamental pillars of this framework include:

• Data Protection: The information of U.S. users is stored exclusively within the Oracle cloud infrastructure in the United States. The privacy and cybersecurity program is governed by frameworks such as the NIST Cybersecurity Framework (CSF) and 800-53 of the National Institute of Standards and Technology (NIST), as well as the ISO 27001 standard and the Cybersecurity and Infrastructure Security Agency (CISA) Requirements for Restricted Transaction Security, with ongoing external audits.
• Algorithm Security: The recommendation system is retrained, tested, and updated using only data from local users. This process is carried out within Oracle’s secure environment to prevent any external interference. This could lead to significant changes in the operation of TikTok’s algorithm in the United States.
• Software Assurance: The entity secures its applications through continuous source code validation protocols. This technical review process is conducted in direct collaboration with Oracle to ensure that the software does not present any vulnerabilities.
• Trust and Safety: The board of directors has independent authority to establish moderation and safety policies, actively safeguarding the U.S. content ecosystem.

This model enables the maintenance of global interoperability, ensuring that local creators retain their international reach and that commercial functionalities, such as advertising, operate at scale. The control exercised by the joint venture also extends to other platforms, such as CapCut and Lemon8, with confirmation that users will not be required to download new applications to retain access.

Leadership and organizational structure

TikTok USDS Joint Venture LLC will operate as an independent entity under the direction of Adam Presser, who has just been appointed CEO of this new joint venture. Presser has been with TikTok since 2022, most recently serving as Head of Operations and Trust & Safety.

The other major appointment announced by TikTok in its statement is Will Farrell, who will serve as Chief Security Officer, overseeing the company’s comprehensive data privacy and cybersecurity program. Farrell has also held positions at TikTok.

Furthermore, TikTok USDS Joint Venture LLC will be governed by a board of directors composed predominantly of American members. The board members are as follows:

• Shou Chew (Director): Serves as Director of the entity and current CEO of TikTok. In this capacity, he is chiefly responsible for leading the platform’s global strategy and business operations.
• Timothy Dattels (Director): Senior advisor at TPG Global, where he also previously served as Partner, Chairman of TPG Asia, and member of the firm’s Executive Committee.
• Mark Dooley (Director): Managing Director at Susquehanna International Group. He is part of the company’s Management Committee, overseeing global commercial operations.
• Egon Durban (Director): Co-Chief Executive Officer of Silver Lake, a company he joined in 1999 as a founding partner. He also sits on the boards of several Silver Lake portfolio companies, including Dell Technologies, Qualtrics, TKO Group, Unity, and Waymo.
• Raúl Fernández (Independent Director and Chair of the Security Committee): Chairman and Chief Executive Officer of DXC Technology and a member of its Board of Directors. He brings over three decades of experience at the intersection of technology, risk, and national security.
• Kenneth Glueck (Director): Executive Vice President in the Office of the Chief Executive Officer at Oracle, where he advises the Chief Executive on global strategy, business, mergers and acquisitions, technology, policy, and regulatory matters, and leads Global Corporate Affairs and Global Corporate Communications.
• David Scott (Director and Security Committee): Serves as Director of Strategy and Security at MGX, where he works collaboratively with the firm’s leadership to set MGX’s strategic direction, including oversight of governance for security and safety risks associated with emerging AI technologies.

Investors

TikTok has explained that the new entity has three major managing investors (each holding a 15% stake): Silver Lake, Oracle, and MGX. Meanwhile, ByteDance retains 19.9% of the joint venture.

“The investor consortium is completed by: Dell Family Office, the investment firm of Michael Dell, founder, chairman and chief executive officer of Dell Technologies; Vastmere Strategic Investments, LLC, an affiliate of Susquehanna International Group, LLP; Alpha Wave Partners; Revolution; Merritt Way, LLC, controlled and managed by Dragoneer partners; Via Nova, an affiliate of General Atlantic; Virgo LI, Inc., the investment arm of a foundation established by Yuri and Julia Milner in support of science; and NJJ Capital, the family office of Xavier Niel, pioneering French telecommunications entrepreneur.”

Photo: generated with Nano Banana Pro (Gemini)