TikTok announced on Thursday, January 22, 2026, the official establishment of TikTok USDS Joint Venture LLC, a move designed to comply with a previous executive order from President Trump that mandated the sale of TikTok's U.S. operations to an American investor group. The restructuring significantly reduces ByteDance's ownership stake to less than 20% of the new entity, with the remaining majority falling under non-Chinese ownership.
The move comes after years of scrutiny surrounding TikTok's U.S. operations, stemming from concerns about potential access to user data by the Chinese government. This controversy placed U.S. users, particularly content creators who rely on the platform for income, in a state of uncertainty. Last year, a temporary outage in the U.S. caused widespread concern before service was quickly restored, highlighting the app's importance to millions.
The resolution follows a protracted period of negotiations and regulatory hurdles. After President Trump extended the TikTok ban deadline for the fourth time, the competitive bidding process among potential investors concluded in December 2025, leading to the final agreement. TikTok had previously returned to both the App Store and Google Play Store on February 2, 2025, signaling a potential resolution to the ongoing regulatory challenges.
The establishment of TikTok USDS Joint Venture LLC represents a significant restructuring of TikTok's U.S. operations, addressing long-standing concerns about data security and foreign ownership. The new ownership structure aims to ensure the platform's continued availability in the U.S. while mitigating potential risks associated with its previous ownership. The long-term impact of this restructuring on TikTok's operations, content moderation policies, and user experience remains to be seen.
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