TikTok’s uncertain future in the United States may finally be approaching a turning point.
According to reports from CNBC and Axios, TikTok CEO Shou Zi Chew has confirmed internal discussions around a deal expected to close on January 22, 2026. Under the proposed structure, TikTok’s US business would operate under a new entity called TikTok USDS Joint Venture LLC.
This move follows years of political pressure after Congress passed legislation requiring TikTok’s US operations to be sold to American owners. Multiple deadline extensions from the White House kept the app alive while negotiations dragged on.
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Who would own TikTok US
The reported joint venture would be led by American and allied investors, with Oracle, Silver Lake, and Abu Dhabi-based MGX acting as the primary partners.
TikTok’s current parent company ByteDance would still retain a minority ownership stake, marking a compromise rather than a full separation.
According to the memo cited by CNBC, the venture would be majority-owned by US investors, overseen by a seven-member board with a US majority, and structured to address national security concerns tied to data handling.
Algorithm and data control in focus
One of the most sensitive aspects of the deal centers on TikTok’s recommendation algorithm.
Axios reports that the joint venture would be responsible for protecting US user data and retraining the content recommendation system exclusively on US-based data. The goal would be to prevent outside influence and address long-standing concerns raised by lawmakers and regulators.
If implemented, this could alter how content is surfaced to American users, potentially changing the familiar For You feed experience.
What stays global and what changes
Despite the creation of a US-focused entity, TikTok would not fully split from its global operations.
ByteDance is expected to maintain a partial ownership role and ensure operational compatibility between US TikTok and international versions of the app. That balance may prove difficult, especially if regulatory expectations continue to tighten.
Still, this structure appears designed to keep TikTok operational in the US while satisfying political demands for domestic oversight.
Why this deal matters now
TikTok’s US saga dates back to 2020, when the first Trump administration issued an executive order calling for a sale. The issue resurfaced repeatedly, with the most recent major update coming in September 2025, when the White House said it had reached a tentative understanding with China regarding US ownership.
If the reported January 2026 deal closes, TikTok’s US operations would formally transition away from full ByteDance control, potentially ending years of uncertainty.
What remains unclear is how much the app’s experience, moderation practices, and algorithmic behavior will change once the new venture takes control.
