The fate of Douyin’s overseas version, TikTok, the Chinese video sharing platform, has taken a major turn. On the 18th, CEO Chew Shou Zi issued an internal memo to employees, announcing that an agreement has been signed with investors to establish a brand new US joint venture, to ensure TikTok can continue operating in the US market. It is expected that TikTok’s US version will officially change ownership on January 22, 2026.
According to the framework agreement previously signed by US President Trump, the new joint entity will be named “TikTok US Data Security Joint Venture.” This company will be majority-owned by US investors and managed by a board of seven members, most of whom are Americans, and its overall operation must comply with conditions to protect US citizens’ data and safeguard national security.
The memo details the new company’s equity structure. An investment consortium made up of tech giant Oracle, private equity firm Silver Lake, and investment company MGX will jointly hold 50% of the joint venture, with each of the three companies holding 15%. The holders of the remaining 5% have yet to be disclosed. As for the remaining 50%, related companies of ByteDance’s existing investors will hold 30.1%, while ByteDance, the parent company, will retain a 19.9% stake.
On the technical and security front, the new joint venture will bear the crucial responsibility of protecting US user data, ensuring the security of core algorithms, content moderation, and software safeguards. Apart from being a shareholder, Oracle will also serve as the “trusted security partner,” responsible for auditing and verifying whether the company is in compliance with national security requirements. All sensitive US user information will be stored in Oracle’s cloud data centers located within the United States.
In addition, an important function of the new entity will be to use US user data to retrain TikTok’s core content recommendation algorithm. This move aims to ensure openness and transparency of the content push mechanism, preventing any external manipulation.
Chew Shou Zi emphasized in the memo that both ByteDance and TikTok have agreed to the terms of the deal. Although much work remains to be done before the transaction is finalized, all parties are currently moving toward completing the deal by January 22, 2026. He noted that this agreement will allow over 170 million American users to continue using this global social platform and community.