WORLD
ByteDance forms JV with American, global investors to operate TikTok app in the US
- IBJ Bureau
- Dec 19, 2025
TikTok’s Chinese owner, ByteDance, has signed binding agreements with three major investors to form a joint venture (JV) to operate TikTok’s US app. The JV, led by American and global investors in a bid to avoid a US government ban, is a significant step towards ending years of uncertainty.
The deal is a milestone for the short video app used regularly by more than 170 million Americans. Since August 2020, US President Donald Trump has tried unsuccessfully to ban the app.
The details of the deal are in line with the one unveiled in September 2024. Mr Trump had then delayed enforcement of the law that would ban the app until January 20 on the condition that its Chinese owners would sell it to US investors.
“We have signed agreements with investors regarding a new TikTok US joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as a part of a vital global community,” TikTok CEO Shou Zi Chew has told employees in a memo seen by the Reuters.
Under the deal, American and global investors will hold an 80.1 per cent stake, while ByteDance will retain a 19.9 per cent stake in the new JV after its divestiture.
Mr Chew has added that the JV will “operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance”.
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