TikTok USA is Officially Announced: Everything You Should Know
- Martina
- 28 January 2026, Wednesday
What once seemed like an endless saga has reached a major turning point. Chinese technology company ByteDance has finalized a deal to divest its US operations for TikTok, following pressure stemming from an executive order signed by US President Donald Trump. Here’s what we know so far about the arrangement that will essentially allow TikTok to continue operating in the United States.
A TikTok Ban Hanging by a Thread for Nearly 2 Years
As mentioned in the introduction – and as many readers have likely been following – the question of “Will or will not TikTok be banned in the USA?” has loomed for quite some time. We previously covered the case in depth in our comprehensive analysis of the potential TikTok ban, as well as in our article on TikTok briefly discontinuing its service in early 2025.
For those who aren't that familiar with the TikTok–US saga or need to refresh their memory a little, here’s a brief rewind to keep you up to speed:
For years, TikTok has been under scrutiny – in the US and the rest of the world, really – due to data privacy violations, mental health concerns, misinformation accusations, a highly addictive recommendation algorithm, and offensive content. In April 2024, then President Biden signed into law the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA). This legislation placed TikTok at risk of a nationwide ban unless its parent company, ByteDance, divested itself of control over the platform’s US operations. Subsequently, ByteDance had 270 days (until January 19, 2025) to comply and make the divestment.
When that did not happen, TikTok shut down in January 2025, though, to the relief of many, only for a few hours. Shortly after, the newly elected President Donald Trump signed an executive order to delay the enforcement of PAFACA for 75 days. Between early 2025 and late 2025, the enforcement deadline was extended three times, as the administration tried to negotiate with ByteDance to bring in investors with a controlling interest in TikTok to meet the PAFACA requirements.
TikTok Creates a Joint Venture to Avoid US Ban
A significant development in the intense story came in December 2025, when the media reported that TikTok agreed in principle to a sale to continue operating in the USA. On January 22, 2026, TikTok officially announced the establishment of TikTok USDS Joint Venture LLC, allowing the short-form video platform to remain available nationwide.
Who Owns TikTok in the USA Now?
So, while ByteDance remains the developer of TikTok and the sole owner of the Beijing-preferred version of the app (as well as the TikTok brand), the ownership and control of TikTok’s US operations will change under the new arrangement.
To comply with PAFACA’s requirements, the newly-established joint venture is majority American-owned. While ByteDance will still have a role in the platform’s development in the US, it will now own less than 20% of the new entity. The remaining 80.1% will fall into a non-Chinese ownership – a managing group of investors based in the United States.
The leading investors include the multinational tech company Oracle, the private equity firm Silver Lake, and the investment company MGX – each will hold a 15% stake in the entity, for a collective 45%. Other companies, including existing ByteDance investors such as the Dell Family Office and Alpha Wave Partners, will hold the remaining 35% of venture ownership.
Governed by a board of seven directors, the joint venture will manage the app’s operations and oversee data protection, algorithm security, content moderation, and software assurance. Under the terms disclosed so far, ByteDance will no longer have access to information about the US version of the app and will also not have any formal control over the platform’s algorithm. Notably, according to TikTok’s announcement, the recommendation algorithm has been licensed to the previously mentioned Oracle.
What Does the Sale Mean for Creators and Viewers in the USA?
What’s most important now for users in the United States is whether the deal will cause any changes in the app’s operations or usage. For artists and creators who rely on TikTok for discovery and fan engagement, stability is the top concern. However, since the agreement has just been announced, most of the details remain unknown.
What appears evident, however, is that those behind the joint venture will aim to cause as little disruption to the app as possible. As a result, it is unlikely that users and creators will need to download a new app to continue using the platform, per multiple media reports.
Nevertheless, any updates – including those affecting the algorithm recommendations – are set to be expected. The new owners already had to deal with severe problems with TikTok functionality during the first weekend after the deal was sealed; however, as they stated, this was due to a data center power outage.
In the meantime, TikTok has updated its Terms & Conditions for its US users, informing them that the contract is now between themselves and TikTok USDS Joint Venture. A new point added to the T&Cs states that children under 13 are not allowed to use the app outside its specific “Under 13 Experience.”
Additionally, users who continue to use TikTok after the divestiture must now explicitly acknowledge the limitations and risks tied to the platform’s generative AI features, including the possibility of inaccurate, misleading, inappropriate, or unlawful content. “By using the platform, including its generative AI-enabled features, you recognise and assume this risk,” the point says.
Finally, the revised T&Cs state that the new US-based TikTok entity “does not endorse any content produced on the platform” and that such content doesn’t reflect the company’s views. At the same time, questions remain about how compliance with the new ownership structure will be monitored and enforced in the long term.
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Martina is a Berlin-based music writer and digital content specialist. She started playing the violin at age six and spent ten years immersed in classical music. Today, she writes about all things music, with a particular interest in the complexities of the music business, streaming, and artist fairness.
