TikTok has signed binding agreements to establish a new joint venture in the United States, a crucial step towards ending years of political tension and threats of a ban due to the platform’s ownership by the Chinese company ByteDance.
Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively own 45% of the new U.S. entity. Subsidiaries of ByteDance’s current investors will own approximately one-third, while the Chinese parent company will retain a 19.9% stake.
The CEO of TikTok, Shou Zi Chew, confirmed that the new venture will operate as an independent entity managed by a seven-member board, with a majority of American members. It will have full responsibilities, including the security of U.S. user data, content moderation, oversight of algorithms, and software integrity assurance. Meanwhile, TikTok’s international activities, such as e-commerce and marketing, will continue under the supervision of ByteDance’s global operations.
This agreement culminates a long process that began in 2020 when then-U.S. President Donald Trump threatened to ban the app over national security concerns. The pressure continued during the Biden administration with legislation requiring ByteDance to sell its U.S. operations by January 2025. The path was cleared when Trump signed an executive order in September 2025, allowing the app to continue operating after a partial transfer of ownership to U.S. investors.
The new entity aims to alleviate American concerns about potential access to user data by the Chinese government or influence over content. However, some privacy experts have expressed reservations regarding Oracle’s role and the relationship of its founder, Larry Ellison, with President Trump, as well as Oracle’s influence in media.
The crisis began in 2020 after the U.S. administration identified potential security risks due to TikTok’s Chinese ownership.
Since then, political and economic negotiations between the United States and China have been intertwined, increasing pressure on ByteDance to sell the app’s American operations. This led to the issuance of laws and executive orders by both Trump and Biden to ensure the transfer of ownership to U.S. investors.
The current deal represents a significant turning point in the U.S.-China relationship concerning digital technology and data security, reshaping the digital investment landscape in America.
TikTok
TikTok is a social media platform for sharing short-form videos, launched internationally in 2017 by the Chinese company ByteDance after merging with its predecessor, Douyin. It rapidly grew into a global cultural phenomenon, significantly influencing music, trends, and digital entertainment.
United States
The United States is a federal republic founded in 1776 after declaring independence from Great Britain, with its modern government established by the Constitution in 1789. Its history encompasses westward expansion, the Civil War, industrialization, and its emergence as a global superpower in the 20th century. The nation is defined by its diverse cultural heritage, democratic ideals, and significant influence on global politics, economics, and culture.
ByteDance
ByteDance is a Chinese multinational internet technology company founded in 2012 by Zhang Yiming, best known for creating the global short-form video platform TikTok. It has grown from a news aggregation app into one of the world’s most valuable private companies, significantly influencing global digital media and entertainment.
Oracle
The Oracle refers most famously to the Oracle of Delphi in ancient Greece, a priestess known as the Pythia who served as a conduit for prophecies from the god Apollo. This sacred site was consulted for centuries on matters of state and personal guidance, making it a central religious and political institution in the classical world.
Silver Lake
Silver Lake is a residential and commercial district in Los Angeles, California, known for its historic role as a hub for the city’s entertainment and counterculture scenes. Originally developed in the early 20th century around the reservoir of the same name, it became famous in the mid-1900s as a center for jazz music and later for its influential indie rock and LGBTQ+ communities.
MGX
MGX is a contemporary art museum located in Paris, France, dedicated to digital and electronic art. It was founded in 2018 as part of the Fondation Groupe EDF, with its history rooted in showcasing the intersection of art, science, and technology from the late 20th century to the present. The museum’s name references the historical “Magasin Électrique” that once occupied the site in the former Renault factories on Île Seguin.
Abu Dhabi
Abu Dhabi is the capital and second-most populous city of the United Arab Emirates, historically centered around a freshwater well and a fort established in the 18th century. Its modern development and wealth are primarily driven by the discovery of oil in the mid-20th century, transforming it into a global hub known for its striking architecture and cultural landmarks like the Sheikh Zayed Grand Mosque.
Shou Zi Chew
Shou Zi Chew is not a place or cultural site, but the CEO of the social media company TikTok. He is a Singaporean businessman who took on the role in 2021, leading the company during a period of significant global scrutiny and regulatory challenges.
Donald Trump
Donald Trump is a businessman and media personality who served as the 45th President of the United States from 2017 to 2021. His presidency was marked by a populist and unconventional political style, significant tax reforms, and a focus on immigration restriction and “America First” foreign policy.
Biden administration
The Biden administration refers to the executive branch of the U.S. federal government under President Joe Biden, which began on January 20, 2021. Its history is defined by policy priorities such as economic recovery from the COVID-19 pandemic, climate change initiatives, and infrastructure investment.
Larry Ellison
Larry Ellison is the co-founder and former CEO of Oracle Corporation, a major American multinational computer technology company he started in 1977. He is known for his pivotal role in developing and marketing Oracle’s flagship relational database products, which helped drive the growth of enterprise software.
China
China is one of the world’s oldest continuous civilizations, with a recorded history spanning over four millennia. It is home to numerous UNESCO World Heritage sites, such as the Great Wall and the Forbidden City, which reflect its long imperial past and profound cultural achievements.
