TikTok skilfully circumvents ban via its US sales operations

TikTok's US arm has been sold to fend off a ban in the US, following legislation in 2024 that forced ByteDance to sell its business to a non-Chinese entity.

The transaction was announced in December 2025 and became operational on January 22, 2026, with a joint venture called TikTok USDS Joint Venture. ByteDance retains a minority stake of 19.9%, while investors such as Oracle (technology), Silver Lake (US fund), MGX (Abu Dhabi) and ByteDance's existing investors in control the majority (50%+). The deal is estimated to be worth close to $14 billion.

The percentage retained by ByteDance is just below the 20% threshold set by US legislation (with reference to the Divestiture Act of 2024) to prevent the company, as a Chinese entity, from retaining effective control over sensitive technology and data. It is now in compliance with national security regulations, with US investors holding the majority and governance power. This is what Yahoo and DGKI report.

The sale follows serious concerns about Chinese government influence, data access and propaganda. Concerns shared by both Joe Biden and Donald Trump. The latter finally approved the transaction. The U.S. branch now handles its own algorithm training (using only U.S. data), content moderation and day-to-day management, while ByteDance handles advertising and global compatibility. For users, little or nothing will change.

(MP/©The Global Money/Picture: appshunter.io via Unsplash)