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TikTok Is Here to Stay As New US Deal Saves The App from A Ban

BY Soko Directory Team · January 23, 2026 01:01 pm

By Robai Ludenyi

TikTok has taken a major step to secure its future in the United States, ensuring that millions of Americans can continue enjoying the app that has become a daily source of entertainment, creativity, and online trends. The popular video-sharing platform announced that it has created a new joint venture that is majority American-owned, a move that allows it to avoid a possible ban linked to concerns over its Chinese ownership.

The new entity, known as TikTok USDS Joint Venture LLC, will run TikTok’s operations in the United States. It will continue serving more than 200 million users, from casual viewers and content creators to influencers, artists, and small brands that rely on the platform to reach audiences. TikTok also says the new structure will strengthen how user data is protected, how its algorithm is managed, and how content moderation decisions are made.

For years, TikTok’s future in the US has been uncertain as lawmakers raised concerns about national security and data privacy. These concerns led to a law passed in 2024 that required ByteDance, TikTok’s China-based parent company, to sell its US operations or face a ban. The new joint venture was designed to meet those legal requirements while keeping the app available to American users.

Under the arrangement, ByteDance will hold a 19.9 percent stake in the new company, staying below the ownership limit set by the law. The rest of the ownership is held by a group of American and international investors, including Silver Lake, Oracle, and Abu Dhabi-based AI investment fund MGX. Several other investment firms are also involved, helping to give the venture a broad ownership base.

One of the biggest changes for users is how their data will be handled. All US user data will be stored on Oracle’s secure cloud systems and regularly reviewed by independent cybersecurity experts. The US entity will also have full control over trust and safety policies, including how content is moderated for American audiences.

For creators and fans, the announcement brings relief after years of uncertainty. TikTok remains one of the most influential entertainment platforms in the world, shaping music hits, viral challenges, fashion trends, and online culture. With this new structure in place, the app appears set to remain a central part of America’s digital entertainment landscape for years to come.

Read Also: Exposed: Facebook, WhatsApp & TikTok Are Eating Your Privacy Alive — And They’re Not Even Hiding It

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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