TikTok reaches deal to keep operating in the U.S. via new joint venture, Financial Times reports
TikTok struck an agreement that would allow it to remain in the United States by forming a new joint venture with majority U.S. ownership, according to the Financial Times. The arrangement includes major U.S. investors and places key operations on Oracle infrastructure, while critics question whether security concerns are fully resolved.
A restructuring to stay in the U.S.
TikTok has reached a deal to continue operating in the United States through a newly created joint venture that would be majority-owned by U.S. investors, the Financial Times reported. The plan is described as being brokered by President Donald Trump and structured to meet U.S. ownership limits affecting TikTok’s parent company, ByteDance.
Under the reported terms, U.S. investors including Oracle, Silver Lake, and MGX would each hold significant stakes, while ByteDance would retain a smaller ownership position capped under U.S. rules. The new governance structure would place several U.S. executives on the board alongside TikTok leadership.
Where data and the algorithm would sit
A central element of the reported agreement is the handling of TikTok’s technology and data. The Financial Times said the recommendation algorithm would be licensed, retrained, and secured on Oracle’s cloud infrastructure, an approach intended to address longstanding concerns about potential access or influence from abroad.
The deal description suggests a hybrid outcome: TikTok’s U.S. corporate structure and key technology controls would shift toward U.S. partners, while ByteDance would still retain influence over parts of the business such as advertising and e-commerce operations. That split is likely to shape how regulators and lawmakers judge whether the arrangement meaningfully reduces risk.
Why this matters for markets and tech policy
A resolution for TikTok would have wide implications for U.S. tech regulation, cross-border investment, and platform governance. The case has become a template for how the U.S. might handle other high-profile technology assets seen as strategically sensitive.
Even with a deal in place, debate is likely to continue. Critics argue that ownership changes alone may not settle questions about influence, software updates, and enforcement mechanisms. Supporters counter that a U.S.-controlled structure with cloud-based safeguards is a pragmatic compromise that preserves a major consumer platform while reducing exposure.