Trump completes restrictions on TikTok; the US joint venture is now officially established, with the US side holding 80.1% equity and Oracle taking over data and algorithms. ByteDance retains 19.9% of the shares.
(Background: ByteDance, TikTok’s parent company, invests heavily with $23 billion! Planning to secure AI survival rights by 2026)
(Additional context: Australia plans legislation to “ban under 16” from using social media. How will decentralized social platforms respond?)

Table of Contents

• Equity and Board of Directors
• Algorithm Isolation
• Trump Timeline

On January 23, US time, TikTok USDS Joint Venture LLC announced its establishment, marking the final outcome after two years of US-China negotiations.

Oracle and the consortium led by Silver Lake control 80.1% of the company, while the original developer ByteDance steps back to 19.9%. The US government gains control through capital means, helping ByteDance mitigate the risk of bans.

Equity and Board of Directors

According to official announcements, the new company’s shareholders include established forces from Silicon Valley and Wall Street. Oracle, Silver Lake, and MGX each hold 15%, with other shares held by institutions such as Walmart Family Fund, Dell Family Office, and Hainan International.

Among the seven board members, US representatives such as Vice Chairman Kenneth Glueck of Oracle and Silver Lake partner Egon Durban form the majority. Even with CEO Zhou Shouzi remaining, they will find it difficult to influence decision-making.

Algorithm Isolation

Controlling equity is just the first step; the true impact on the platform’s core lies in algorithms and data. According to Hypebeast, CapCut and Lemon8 are also incorporated into the joint venture management. All US user data will be stored on Oracle Cloud with ring-fenced isolation, and recommendation algorithms must be retrained, tested, and updated within the same environment.

Trump Timeline

The Biden administration proposed the “TikTok Divestment Act” in 2024, requiring ByteDance to withdraw by January 2025.

However, after Trump took office in January 2025, the situation changed dramatically. He issued four consecutive executive orders delaying the ban, ultimately facilitating this “Americanization” acquisition. Trump called investors “great American patriots” on Truth Social, framing this deal as a success that balances user interests, capital, and national security.

Approximately 7.5 million US businesses use TikTok for marketing. With the joint venture in place, advertising budgets are expected to flow back. New CEO Adam Presser stated:

We are committed to protecting national security and ensuring the safety of US user data, applications, and algorithms.

However, ByteDance still holds nearly 20% of the shares. If future US political sentiments shift toward “de-Chinese” social media, this stake could become a focal point of public opinion. Additionally, the US version’s exclusive algorithms are decoupled from the global version, which may weaken content diversity—a challenge creators will face moving forward.