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Why China’s ByteDance Could Be a Big Winner in Its TikTok Deal with Trump

TikTok USDS will host U.S. user data on Oracle servers with safeguards for algorithms and content moderation to comply with national security demands, avoiding a ban.

  • On Friday, ByteDance announced formation of TikTok USDS to host U.S. user data on Oracle servers, route U.S. traffic to Oracle Cloud, and operate under safeguards for data and content.
  • Faced with the divest-or-ban statute, ByteDance Ltd. failed to reach a sale before the Supreme Court of the United States upheld the law on January 17, 2025, and briefly took TikTok offline after the Sunday, January 19 deadline.
  • Adam Presser will lead TikTok USDS as CEO with a seven-member, majority-American board including Shou Chew, TikTok CEO; ByteDance Ltd. holds 19.9%, while Silver Lake, Oracle, and MGX Fund Management each own 15%.
  • The deal preserves TikTok’s U.S. operations and keeps the platform available to U.S. users, ending a long legal battle that involved a $14 billion valuation reported by some sources.
  • TikTok USDS now faces immediate scrutiny after California Gov. Gavin Newsom said his office confirmed suppressed content critical of President Trump and ordered the U.S. Department of Justice to investigate.
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In January 2026 the government of the United States and that of the People's Republic of China reached an agreement that avoided the definitive blocking of TikTok on the American market. Who was afraid that TikTok would be banned forever from US soil was denied. The understanding led to the birth of a new company, TikTok USDS Joint Venture LLC, based in the United States, designed to respond to Washington's demands on national security and data …

·Rome, Italy
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With the sale of company shares, Tiktok and its Chinese parent company Bytedance rescue the social media platform from the ban. Tiktok thus becomes more than 80 percent American-owned.

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The Journal Record broke the news in on Monday, January 26, 2026.
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