New Delhi, January 23: TikTok has officially completed a landmark deal to spin off its US operations, ending a yearslong standoff between Washington and Beijing over national security concerns tied to the popular short-video app. The move hands operational control of TikTok in the United States to a newly formed American joint venture, TikTok USDS Joint Venture LLC, ensuring the platform remains available to more than 200 million US users.

Under the agreement, TikTok’s Beijing-based parent ByteDance has reduced its ownership to a 19.9 percent minority stake, ceding majority control to a group of US and allied investors. The new ownership group includes Oracle, private equity firm Silver Lake, and UAE-based investment firm MGX. The deal was facilitated with backing from the White House under President Donald Trump. TikTok Allowed To Continue in Canada for Now Amid National Security Concerns; Court Overturns Dissolution Order for ByteDance Subsidiary.

TikTok said the new US entity will operate with strict safeguards designed to address long-standing national security concerns. These include comprehensive protections around user data, software systems, content moderation, and algorithm security. Crucially, Chinese engineers will no longer have control over TikTok’s recommendation algorithm for US users. AI-Only TikTok Rival Coming? ChatGPT-Maker OpenAI Reportedly To Launch Social Media App for AI-Generated Videos.

According to the company, the algorithm will now be retrained, tested, and updated exclusively using US user data, and secured within Oracle’s US-based cloud infrastructure. All US user data will also be stored domestically and subject to ongoing reviews by independent cybersecurity experts.

TikTok USDS will be governed by a seven-member board, the majority of whom are American. The company will be led by Adam Presser, with TikTok CEO Shou Chew serving on the board.

The announcement brings closure to a turbulent chapter that saw bipartisan efforts to ban the app, repeated delays to enforcement, and widespread uncertainty among creators and businesses. While operational control has shifted, TikTok said the platform will continue to function as a global experience, allowing US creators to reach international audiences and brands to operate at scale.

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(The above story first appeared on LatestLY on Jan 23, 2026 07:18 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).