TikTok to launch US joint venture with Oracle, Silver Lake | The Express Tribune

TikTok, the most popular platform for short video sharing globally, has signed binding agreements with three major investors to establish a new joint venture in the United States, securing its continued presence in the country. The development – confirmed in an internal memo to employees by CEO Shou Zi Chew on Thursday – marks an important step toward resolving years of uncertainty surrounding the app’s future in the US.

The deal – set to close by January 22, 2026 – comes after nearly three years of legal and regulatory battles that began in August 2020 when then-president Donald Trump attempted, unsuccessfully though, to ban the platform, which now boasts over 170 million active American users, according to China’s CGTN.

TikTok, owned by the Chinese tech company ByteDance, has partnered with Oracle, Silver Lake, and Abu Dhabi-based MGX to create a new US entity called TikTok USDS Joint Venture LLC. According to the memo, the joint venture will be 50% owned by these new investors, with each holding a 15% stake. Existing ByteDance investors will hold 30.1%, while ByteDance itself will retain a 19.9% share.

Oracle’s Executive Chairman Larry Ellison, a long-time ally of Trump, is among the new investors. The deal ensures that TikTok will remain operational in the US, allowing “over 170 million Americans to continue discovering a world of endless possibilities,” as stated in the memo.

CEO Shou Zi Chew expressed his appreciation for employees’ hard work in keeping TikTok operational at the highest level. He stressed that the company’s focus will remain on delivering value to users, creators, and businesses globally.

The joint venture will be governed by a seven-member board, all of whom will be majority-American. The new entity will take responsibility for data protection, algorithm security, content moderation, and software assurance for US users. TikTok global’s US entities will continue to handle global product interoperability and specific commercial activities like e-commerce and advertising.

The new entity will be responsible for US data protection, algorithm security, content moderation and software assurance, while TikTok global’s US entities will manage global product interoperability and certain commercial activities, including e-commerce, advertising and marketing.

With respect to the algorithm, the memo states the new entity will oversee “retraining the content recommendation algorithm using US user data to ensure the content feed is free from outside manipulation.”

The deal follows legislation passed by the US Congress under former president Joe Biden that required ByteDance to sell TikTok’s US operations or face a ban in its largest market. US officials have warned that China could use TikTok to collect data on Americans or exert influence through its algorithm.

In his second term, Trump has repeatedly delayed enforcement of the law through executive orders, most recently extending the deadline until January. The agreement largely confirms a White House announcement made in September, which said a deal had been reached that would meet the requirements of the 2024 law.

Critics argue that the battle over TikTok is less about data privacy concerns and more about a broader contest for control over global digital influence. The popular Chinese-origin app has outpaced American platforms like Facebook and YouTube, prompting alarm in Washington.

While the public focus was on national security risks, such as espionage, the underlying fear of the US establishment was much broader: the loss of control over the algorithms shaping how Americans consume information. TikTok’s success threatened the dominance of US tech giants, triggering a protectionist response framed as a national security imperative.

The deal raises concerns about hypocrisy. Instead of removing potential security threats, the US has installed corporate gatekeepers and even government-appointed trustees to oversee TikTok. They argue that this merely swaps one form of control – alleged Chinese surveillance – for another: American surveillance.

Experts warn that giving US authorities and firms access to TikTok’s data could lead to domestic spying and manipulation of the platform’s algorithm, mirroring the very abuses Washington accused Beijing of perpetrating.

This clash underscores the emerging concept of “algorithmic sovereignty” – the idea that governments should regulate algorithms to align with national values, not just corporate interests or foreign powers.

In contrast to the US model, where tech giants operate largely unchecked, China has adopted a state-led approach, treating data and algorithms as critical infrastructure. Since 2020, Chinese regulators have required platforms to file and update their algorithms, enforcing greater oversight. China’s goal is to use technology to serve social stability, contrast to the US model of profit-driven, unregulated digital markets.

The TikTok saga is part of a larger “tech Cold War,” where Washington has targeted Chinese firms like Huawei with sanctions to protect US technological dominance. Meanwhile, Beijing’s growing regulatory influence, including algorithmic governance, offers an alternative model to global digital oversight, one that could reshape the internet’s future.