In a significant operational reshuffle, ByteDance, the Chinese parent company of TikTok, is preparing to divide its American workforce between two separate corporate structures. This move is a direct response to US legislation aimed at curbing foreign adversary control over popular apps.
The Two-Track Structure for US Employees
Contrary to earlier expectations of a wholesale transfer, not all TikTok employees in the United States will join the newly proposed US-based entity. Internal company memos reveal a planned split. A portion of the staff will become part of a fresh joint venture named TikTok USDS Joint Venture LLC. The remaining employees will continue working under ByteDance's global umbrella entity, TT Commerce & Global Services LLC.
The assignment of staff is not arbitrary but is based on specific job functions and their connection to TikTok's worldwide systems. Employees whose work revolves around data protection and algorithm security are slated to join the USDS Joint Venture. This new venture will be overseen by US investors, including Oracle, Silver Lake, and MGX.
On the other side, personnel involved in commercial activities like e-commerce, advertising, and marketing are expected to stay with the global entity. The reason cited is that these products and services are intrinsically linked to TikTok's international operations. This transition is reportedly set to be completed by January 22.
Ownership Stakes and the Legal Backdrop
If the proposed deal materialises, the ownership of the new US joint venture will be distributed among several parties. Reports indicate that Oracle, MGX, and Silver Lake would each own 15% of the venture. Entities connected to current ByteDance investors would collectively hold approximately 30%, while about 5% would go to a group of unnamed new investors.
To comply with stringent US ownership regulations that effectively forced this divestment, ByteDance itself would retain just under 20% of the new entity. This entire restructuring is driven by the Protecting Americans from Foreign Adversary Controlled Applications Act. This US law mandates that companies based in nations considered foreign adversaries must either sell their American operations or face massive fines. The law explicitly names TikTok and its China-based owner, ByteDance.
TikTok's legal challenge against this act was unsuccessful. The US Supreme Court ruled against the company in January 2024, upholding the legislation. The path to a resolution saw intervention at the highest levels; last year, US President Donald Trump permitted the app to continue operating via executive orders while his administration negotiated a deal.
Deal Valuation and Strategic Rationale
In September 2025, the White House announced that an agreement had finally been reached with ByteDance. US Vice President JD Vance stated that the deal values TikTok's US operations at a substantial $14 billion.
TikTok CEO Shou Chew has reportedly explained the logic behind the dual-structure plan to staff. He indicated that this setup would allow TikTok's global commercial services to continue functioning seamlessly. Simultaneously, it places sensitive security-related functions under the direct supervision and oversight of the new US-led joint venture, addressing core national security concerns raised by American lawmakers.
This strategic split represents ByteDance's concerted effort to create a firewall between its US operations and its global parent company, aiming to ensure TikTok's future in one of its largest markets while navigating complex geopolitical regulations.
