In a significant development for the social media landscape, TikTok has successfully navigated regulatory challenges by establishing a new American-led ownership structure. The popular photo and video sharing platform has officially transitioned to this new arrangement, effectively avoiding what could have been a permanent nationwide ban in the United States.
TikTok CEO Announces "Good News" to Employees
Soon after the ownership transition was finalized, TikTok CEO Shou Zi Chew sent an internal memo to company employees, sharing what he described as "good news" for the platform's future. The communication came as a relief to many within the organization who had been working through uncertain regulatory waters.
New Entity Ensures Continuity for American Users
The deal establishes TikTok USDS Joint Venture LLC, a newly formed entity that will keep the platform operational for its massive user base of 200 million Americans. This strategic move represents a carefully negotiated solution to address national security concerns while preserving the platform's presence in one of its most important markets.
The ownership structure of TikTok US is now divided among a consortium of American and global investors, with TikTok's parent company ByteDance retaining a minority stake in the operation. This arrangement satisfies regulatory requirements while maintaining some connection to the platform's origins.
Detailed Ownership Breakdown and Responsibilities
The ownership distribution reveals a carefully balanced structure designed to address multiple concerns:
- Oracle Corporation maintains a 15% stake and will serve as the "technological steward" of the platform. Their responsibilities include hosting all US user data and overseeing the retraining of TikTok's recommendation engine to ensure compliance with American standards.
- Silver Lake and MGX – an Emirati-based AI and technology investment firm – each hold 15% stakes in the venture, bringing international investment perspectives to the table.
- ByteDance retains a 19.9% stake, described as a non-controlling interest that allows the original parent company to maintain some involvement while ceding operational control.
- The remaining 35.1% belongs to Strategic Investors, a group that includes Michael Dell's family office and Vastmere Strategic Investments, an affiliate of Susquehanna International Group.
CEO Thanks Employees for Resilience During Challenging Period
In his message to staff, Chew specifically thanked employees for their "resilience" during what has been a challenging regulatory period. He emphasized the platform's continued growth and importance in American digital life, noting that "more than 200 million Americans now come to TikTok to be entertained, learn, and grow their business with a broader global community."
Key Excerpts from CEO's Internal Memo
The full memo provided additional insights into the company's perspective on this transition:
"I am pleased to update you with some great news. Today, TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025, enabling our US users to continue to discover, create, and thrive as part of TikTok's vibrant global community and experience."
Chew continued with pride about the platform's American user base and expressed gratitude for both user support and employee dedication that has allowed the company to "continue delivering at a high level."
Operational Structure and Leadership Appointments
The newly formed Joint Venture will operate under defined safeguards designed to protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users. These measures directly address the concerns that had prompted regulatory scrutiny.
Leadership of the venture has been assigned to Adam Presser, who was chosen by the Joint Venture's Board of Directors based on his impressive track record with the company. Presser has previously led large-scale teams in the critical areas of Trust & Safety and Operations.
Ensuring Global Interoperability and Business Continuity
Maintaining the global experience that users and creators have come to expect remains a priority. The company recognizes that interoperability will be critical for enabling the same global experience that users know and love, and for allowing 7.5 million US businesses to continue thriving on TikTok by reaching customers worldwide.
To ensure this continuity, new subsidiaries including "TT Commerce & Global Services LLC" have been created. These entities will manage global product interoperability as well as commercial activities encompassing e-commerce, advertising, and marketing operations.
Compliance Training and Future Protocols
The company has already provided compliance training for all TikTok employees, and going forward, when working with the newly created USDS Joint Venture, all staff are expected to continue following strict protocols related to data privacy, content assurance, code compliance, and trust and safety measures.
Chew concluded his message by thanking employees for their "tireless work" in fulfilling the company's mission to inspire creativity and bring joy to users worldwide.
This ownership transition represents a landmark moment in the ongoing evolution of global social media platforms operating within complex regulatory environments. The establishment of TikTok USDS Joint Venture LLC demonstrates how technology companies can adapt their structures to meet national security requirements while continuing to serve their user communities.
