TikTok USDS

Last updated
TikTok USDS
Company type Joint venture
Industry Social media service
FoundedJanuary 22, 2026;6 days ago (2026-01-22)
Headquarters,
U.S.
Area served
United States
Key people
  • Adam Presser (CEO)
  • Will Farrell (CSO)
Owner
Website usdsjv.tiktok.com

TikTok USDS Joint Venture LLC is an American technology company established in January 2026 to oversee TikTok's operations in the United States. It was formed to address U.S. national security concerns regarding potential access by the Chinese government through ByteDance.

Contents

History

Negotiations

In 2024, the United States Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act, a law that required services defined as a "foreign adversary controlled application"—including those operated by ByteDance, explicitly named in the law—to be rendered inoperable unless the application is divested. Three days before Donald Trump's second inauguration in January 2025, the Supreme Court ruled in TikTok, Inc. v. Garland that the law was constitutional. [1] The following day, TikTok ceased operating in the United States with a messaging reserving that Trump had "indicated that he will work with us on a solution". [2] TikTok gradually returned after Trump publicly stated he would delay enforcement of the ban; [3] Trump's initial actions included an executive order directing his attorney general not to enforce the law. [4] Additionally, Trump threatened to impose tariffs on China if the country's government failed to agree to sell at least fifty percent of TikTok to an American company. [5] That month, NPR reported that a consortium of investors, including Oracle and Microsoft, were working with the Trump administration on an acquisition plan for TikTok. [6] Microsoft's intentions were publicly confirmed by Trump. [7]

The process garnered attention from other American investors. A consortium led by the Employer.com founder Jesse Tinsley and composed of the YouTuber MrBeast; David Baszucki, the co-founder and chief executive of Roblox; and Nathan McCauley, the co-founder and chief executive of Anchorage Digital was said by Tinsley to have exceeded a rival offer of US$20 billion, ostensibly in reference to Project Liberty's effort to acquire TikTok, organized by Frank McCourt and Kevin O'Leary. [8] Trump's initial comments offered several opposing perspectives, including that a bidding war should occur, that the United States government should own a percentage of the resulting company, and that Microsoft and Elon Musk were potential buyers. [9]

Establishment

On January 22, 2026, TikTok stated that ByteDance had reached an agreement to establish an American version of TikTok. [10]

Operations and technology

TikTok USDS assumed control of TikTok in the United States after its establishment. Its privacy policy was changed to permit the company to track users's precise location, monitor their interactions with artificial intelligence, and provide collected information outside of TikTok. [11] TikTok experienced a large outage several days after the establishment of TikTok USDS; the company attributed the issue to a power outage at a data center located within the United States. [12]

Corporate affairs

Ownership

A consortium led by Oracle, MGX Fund Management Limited, and Silver Lake each acquired a fifteen percent share in TikTok USDS, while an additional five percent comprise other investors. The remaining fifty percent is held by "affiliates of certain existing investors of ByteDance" and by ByteDance itself. The investors include Michael Dell's family office; Vastmere Strategic Investments, an affiliate of Susquehanna International Group; Alpha Wave Partners; Revolution; Merritt Way, a subsidiary of Dragoneer Investment Group; Via Nova, an affiliate of General Atlantic; Virgo LI, the investment company operated by a foundation established by Yuri and Julia Milner; and NJJ Capital, Xavier Niel's family office. [13]

Executives and board

In January 2026, ByteDance named Adam Presser, TikTok's head of operations and the former chief of staff to chief executive Shou Zi Chew, as the chief executive of TikTok USDS. [14] Will Farrell was named as its chief security officer. [13]

TikTok USDS's board of directors include Chew; Egon Durban, the co-chief executive of Silver Lake; Mark Dooley, the managing director of Susquehanna International Group; Timothy Dattels, a senior advisor to TPG Inc.; Raul Fernandez, the chief executive of DXC Technology; Kenneth Glueck, an executive vice president at Oracle; and David Scott, the chief strategy and safety officer of MGX. [13]

References

  1. Liptak, Adam (January 17, 2025). "Supreme Court Backs Law Requiring TikTok to Be Sold or Banned". The New York Times . Retrieved January 26, 2026.
  2. Maheshwari, Sapna; Kircher, Madison; Tan, Eli; Tobin, Meaghan (January 18, 2025). "TikTok Goes Dark in the U.S." The New York Times . Retrieved January 26, 2026.
  3. McCabe, David (January 19, 2025). "TikTok Flickers Back to Life After Trump Says He Will Stall a Ban". The New York Times . Retrieved January 26, 2026.
  4. McCabe, David (January 20, 2025). "Trump Signs Executive Order in Attempt to Stall TikTok Ban". The New York Times . Retrieved January 26, 2026.
  5. Politi, James; Chávez, Steff; Williams, Aime (January 20, 2025). "Donald Trump threatens 25% tariff within days for Mexico and Canada". Financial Times . Retrieved January 26, 2026.
  6. Davis, Wes (January 25, 2025). "Oracle and Microsoft are reportedly in talks to take over TikTok". The Verge . Retrieved January 26, 2026.
  7. Zakrzewski, Cat; Harwell, Drew; Pannett, Rachel (January 27, 2025). "Trump says Microsoft is in contention to buy TikTok". The Washington Post . Retrieved January 26, 2026.
  8. Levine, Alexandra (January 29, 2026). "TikTok Bidder to Offer 'Significantly' More Than $20 Billion". Bloomberg News . Retrieved January 26, 2026.
  9. Hirsch, Lauren; Maheshwari, Sapna (February 4, 2025). "How a Sale of TikTok Would Work and Who Might Buy It". The New York Times . Retrieved January 26, 2026.
  10. McCabe, David; Lindner, Emmett (January 22, 2026). "TikTok Strikes Deal for New U.S. Entity, Ending Long Legal Saga". The New York Times . Retrieved January 26, 2026.
  11. Rogers, Reece (January 23, 2026). "TikTok Is Now Collecting Even More Data About Its Users. Here Are the 3 Biggest Changes". Wired . Retrieved January 26, 2026.
  12. Belanger, Ashley (January 26, 2026). "Data center power outage took out TikTok first weekend under US ownership". Ars Technica . Retrieved January 26, 2026.
  13. 1 2 3 Weprin, Alex (January 22, 2026). "Adam Presser Named CEO of U.S.-Controlled TikTok JV as Board and Investors Revealed". The Hollywood Reporter . Retrieved January 26, 2025.
  14. Levine, Alexandra (January 23, 2026). "TikTok's New CEO Brings Hollywood Connections, ByteDance Loyalty". Bloomberg News . Retrieved January 26, 2026.