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TikTok reaches deal on new US venture with American investor group
The deal was signed on Thursday, with the landmark move ending years of legal and political uncertainty
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In a landmark move that ends years of legal and political uncertainty, TikTok CEO Chew Shou Zi informed employees on Thursday that the company has signed a binding agreement to divest its US entity into a joint venture controlled by a consortium of American investors.
The deal, which has received the backing of US President Donald Trump, effectively averts a looming nationwide ban and secures the platform’s future for its 170 million American users.
The new entity, named TikTok USDS Joint Venture LLC, is set to come into effect on January 22, 2026.
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The deal restructures TikTok’s ownership to comply with US national security rules on data privacy and foreign influence.
“The US joint venture will be responsible for US data protection, algorithm security, content moderation and software assurance,” Chew said in an internal memo seen by the South China Morning Post.
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“It will also have the exclusive right and authority to provide assurances that content, software and data for American users is secure.”
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