On January 23, 2026, TikTok officially released an announcement, declaring the establishment of TikTok USDS Joint Venture LLC (TikTok U.S. Data Security Joint Venture).

Thus, after years of negotiations, the separation of TikTok's U.S. business and data security talks have finally reached a conclusion.

This means that over 200 million U.S. users can continue using TikTok, and about 7.5 million American businesses can maintain their global operations.

 

Image source:TikTok official website

U.S.TikTok's New Structure Unveiled

This restructuring plan clarifies the new operational landscape for TikTok in the U.S. According to official documents, the new TikTok USDS company will mainly be responsible for:

-U.S. user data management, security review, and algorithm compliance;

-Operated by an independent management team, not subject to direct control by ByteDance.

The company's CEO is Adam Presser, and the Chief Security Officer is Will Farrell. The board consists of seven members, most of whom are U.S. nationals, with TikTok CEO Shou Zi Chew also on the board.

TikTok emphasizes that the intellectual property rights of the algorithm remain with ByteDance. The joint venture only receives usage authorization, and algorithm reviews must be conducted within ByteDance's transparency center, with the entire process monitored, but any copying, downloading, or photographing is strictly prohibited.

 

Image source: Internet

Equity Structure Revealed: ByteDance Remains Largest Single Shareholder

The joint venture's equity allocation has also been officially disclosed:

· Oracle:15% stake

· Silver Lake:15% stake

· Abu Dhabi MGX Fund:15% stake

· ByteDance's partial investors and affiliates:30.1% combined

· ByteDance:Directly holds 19.9%

In this way, ByteDance-related parties hold about 50% in total, remaining the largest single shareholder. According to U.S. media reports, this deal values TikTok's U.S. business at about $14 billion, but ByteDance's actual earnings have not been disclosed.

 

Image source: Internet

"Dual Entity" Operational Model Established

According to the plan, TikTok will adopt a "dual entity" operational model in the U.S. in the future:

· TikTok USDS joint venture is responsible for user data and algorithm security;

· TikTok U.S. company (wholly owned by ByteDance) is responsible for e-commerce, advertising, and market promotion functions.

This structure meets U.S. security regulatory requirements while ensuring TikTok's coherent operation within its global product system, providing a practical path for Sino-U.S. business cooperation.

 

Multi-perspective: Balance in Compromise

Fudan University international affairs expert Shen Dingli believes that this plan achieves a balance between data security and commercial autonomy through a clever separation of equity and responsibilities, addressing the core concerns of U.S. regulators while safeguarding key Chinese interests.

Chinese Ministry of Commerce spokesperson He Yungqian previously responded that China and the U.S. have reached a basic consensus on TikTok and other issues based on mutual respect and equal consultation. He hopes the U.S. will provide a fair, transparent, and non-discriminatory business environment for Chinese companies to operate long-term in the U.S.

 

Industry Impact: A New Compliance Example

The TikTok U.S. plan is seen as an innovative example for multinational tech companies to address conflicts between data sovereignty and regulation.

This move not only resolves political and security risks in the process of business globalization, but also explores a balanced path in terms of technology, capital, and governance.

For the e-commerce industry, TikTok Shop will continue to expand in the U.S. market, maintaining its core advantage in social content and commercial conversion. In the future, its model may become a reference sample for other large internet companies to operate in compliance in international markets.

 

TukeObservation:

TikTok's rebirth in the U.S. not only wins a "lifeline," but also finds a survival balance in the game of compliance and sovereignty. For cross-border sellers, this means TikTok Shop's e-commerce ecosystem will continue to expand in the U.S. market, and the integration of social and commerce will remain one of the global growth engines in 2026.