TBA Law Blog


Posted by: Azya Thornton on Jan 23, 2026

Almost two years after a federal law effectively mandated a nationwide ban on TikTok, the company has announced the formation of a new U.S.-based entity to comply with the statute. TikTok has confirmed that a joint venture made up primarily of U.S.-based investors has been formed to take over the app’s operations for American users, CBS News reports. Three firms will serve as managing investors and collectively own 45% of the company, while eight additional investors will hold 35% and original owner ByteDance will retain a 19.9% stake, just below the 20% ownership cap allowed under the law. Both the United States and China approved the deal, under which U.S. operators will retrain, test and update the app's content recommendation algorithm using data from American users. The Trump administration delayed implementation of the law several times to give the parties more time to negotiate a resolution.