TikTok sold to US to avoid ban from any media. The app has finalized an agreement to sell a sufficient stake in its US operations to comply with the country’s divest-or-ban law, setting the stage for the platform to continue operating in the United States. TikTok is set to change ownership in United States after reaching a deal aimed at avoiding a nationwide ban. Ending months of uncertainty surrounding the popular video-sharing app.
TikTok’s parent company has agreed to sell its US operations to an American-led group. Addressing long-standing concerns raised by US lawmakers over data security and national safety. The move is expect to keep the app running for its millions of American users while bringing it under stricter US oversight. The deal, first reported by Axios. The Hollywood Reporter, and CNBC, was confirmed in a memo sent by CEO Shou Zi Chew to employees on Thursday. TikTok is targeting January 22, 2026, as the closing date for the transaction.
Control And Responsibility
Under the agreement, a new entity called TikTok USDS Joint Venture LLC will created. Ownership of the US joint venture will split among new American investors. Existing ByteDance investors, and ByteDance itself. TikTok’s US business will reportedly operate independently, with American leadership and data stored on US-based servers. This structure is intend to ensure greater transparency and compliance with US laws.
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For creators and businesses who rely heavily on the platform, the deal brings relief. Many had feared a sudden shutdown that could disrupt income streams and digital marketing efforts. Social media analysts say the agreement could also set a precedent for how foreign tech companies operate in the US market going forward. While final regulatory approvals are still pending, the sale marks a major turning point for TikTok, allowing it to continue operating in the US and putting an end to the immediate threat of a ban.
TikTok USDS Joint Venture LLC will function as an independent entity built on the existing TikTok US Data Security organization. It will have exclusive authority to provide assurances that US user data, content, and software are secure.