TikTok Forms U.S. Joint Venture to Continue Operations Under 2025 Executive Order
24.01.2026
12777
TikTok launches a U.S.-owned joint venture, cuts ByteDance stake to 19.9%, and secures U.S. data and algorithms on Oracle cloud.
TikTok Forms U.S. Joint Venture to Continue Operations Under 2025 Executive Order
TikTok just pulled a major power move to stay alive in the U.S. — launching a U.S.-owned joint venture that slashes ByteDance's stake to 19.9% and locks American user data + algorithms on Oracle's cloud. This is their Hail Mary to comply with the 2025 executive order threatening a ban.
The new entity, TikTok U.S. Data Security (USDS), will be majority-owned by American investors — think Oracle, Walmart, and other U.S. firms. ByteDance gets diluted to a minority 19.9%, with zero voting rights on data security decisions. All U.S. user data gets migrated to Oracle Cloud Infrastructure, with algorithms running in a 'secure enclave' that ByteDance can't touch.
This isn't just a tech shuffle — it's a full-blown national security play. The 2025 executive order demanded Chinese-owned apps either divest or face a U.S. ban over data privacy concerns. TikTok's workaround? Create a U.S.-controlled shell that technically keeps the app running while cutting Beijing's access.
- • ByteDance stake drops from 100% to 19.9% in the U.S. entity
- • U.S. investors (Oracle, Walmart, etc.) take majority ownership
- • All American user data moves to Oracle Cloud
- • Algorithms run in a secured Oracle enclave — no backdoor access for China
- • TikTok U.S. Data Security (USDS) becomes the operational arm
- • Compliance with 2025 executive order to avoid a U.S. ban
The deal still needs CFIUS and DOJ approval — and you know Washington's gonna scrutinize every line. But if it clears? TikTok stays live for 170 million U.S. users, ByteDance keeps some revenue, and Oracle gets a massive cloud contract. Everyone wins... except maybe China's surveillance ambitions.
Bottom line: TikTok just rewired its entire U.S. existence to survive regulatory extinction. Data's on Oracle's servers, algorithms are in a locked box, and ByteDance is now a silent minority partner. The ban clock is still ticking — but this JV might just be the killswitch override.
#TikTok#Chinese Apps#Data Privacy#regulation#USA
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