After years of tensions between Washington and Beijing, ByteDance has finalized a deal aimed at avoiding a TikTok ban in the United States. The new entity, TikTok USDS Joint Venture LLC, will be 80.1%-owned by American and international investors. China's ByteDance will retain 19.9%. The new shareholders are Oracle, Silver Lake and MGX; each of which will hold 15% of the equity, along with several smaller investors. The entity's role is to ensure the security of American users' data, apps and algorithms through strengthened cybersecurity protocols.

The agreement marks a politically favorable outcome for Donald Trump. The president had initially tried to ban TikTok in 2020 on national security grounds, then refrained from enforcing the April 2024 law requiring the divestment of ByteDance's US assets. He welcomed the arrival of these investors, while thanking Xi Jinping for accepting the compromise.

Details of the relations between the various stakeholders remain fairly unclear, as does the transaction's value. One certainty is that the infrastructure will be hosted on Oracle's cloud. TikTok CEO Shou Chew will sit on the board of the new entity alongside former US TikTok executives.