Following President Trump's September executive order, TikTok CEO Shou Zi Chew's memo confirms agreement on TikTok USDS Joint Venture LLC, averting a US ban for 170 million users and effective January 22, 2026. Uncertainties persist over Beijing's approval and the core algorithm's handling.
TikTok CEO Shou Zi Chew confirmed in an internal memo on December 19, 2025, that the company and parent ByteDance have finalized terms for a US joint venture, building on President Donald Trump's September 2025 executive order aimed at addressing national security concerns.
The new TikTok USDS Joint Venture LLC, backed by US investors including Oracle and Silver Lake, will manage US data protection, algorithm security, content moderation, and software assurance. It holds exclusive authority over securing content, software, and data for American users, securing the platform's future for its 170 million users and averting a nationwide ban.
This follows earlier progress reported last week, where the deal advanced toward majority US control. However, compliance issues remain, and Beijing's approval for the spin-off—particularly regarding the core algorithm—is uncertain, potentially straining US-China ties.
The venture is set to launch January 22, 2026, nearly a year after initial deadlines were extended.
