TikTok has signed a deal to spin off parts of its U.S. operation into a new joint venture, according to an internal memo reported by NPR. The arrangement is aimed at keeping TikTok operating in the United States amid long-running national security scrutiny and legal pressure, with creators and users watching closely for what changes (if any) they’ll experience. In an internal message described by Business Insider, TikTok CEO Shou Chew told employees the U.S. venture will have authority over data protection and other security-focused functions, while ByteDance retains control over core commercial lines such as advertising and e-commerce.

Highlights:

• Investor roles: Oracle, Silver Lake, and Abu Dhabi-based MGX are described as “managing investors” in the new U.S. joint venture structure.
• Security scope: The new U.S. entity is built on TikTok’s existing U.S. Data Security (USDS) organization and is described as taking charge of U.S. data protection, algorithm security, content moderation, and software assurance.
• Commerce stays global: Chew’s memo says TikTok’s global U.S. entities will continue to handle “certain commercial activities,” including e-commerce, advertising, and marketing, rather than handing those revenue drivers to the new owners.
• Creator relief: The Los Angeles Times reports many creators welcomed the deal as a path to keeping the app available in the U.S. after fears it could disappear following a Supreme Court decision upholding a ban tied to national security concerns.

Perspectives:

• TikTok leadership (Shou Chew memo): The company framed the deal as a way to create an independent U.S. entity responsible for security-related functions while leaving key commercial operations with TikTok’s existing global/U.S. entities. (Business Insider)
• TikTok creators: Creators interviewed viewed the agreement positively because it reduces the risk of losing access to their audiences and income streams if the app were removed from the U.S. market. (Los Angeles Times)
• US national-security critics (as cited in coverage): Coverage notes U.S. national security concerns have driven legal and political pressure on TikTok’s ownership and operations, shaping the push for a U.S.-structured solution. (NPR)

Sources:

• TikTok signs a deal to spin off its U.S. operation - npr.org
• TikTok's new US owners won't control key parts of the business, according to a leaked memo - businessinsider.com
• TikTok creators welcome deal to keep app in the U.S. - latimes.com
• Leaked Memo Reveals Why TikTok's New US Owners May Have Less Power Than Expected - yahoo.com
• What the deal between TikTok and US investors means for users - ABC News - google.com