TikTok on Thursday announced the creation of a majority American-owned joint venture to run its US operations, a move that allows the video-sharing platform to avoid a ban stemming from concerns over its Chinese ownership.
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The new entity, TikTok USDS Joint Venture LLC, will serve more than 200 million users and 7.5 million businesses in the United States, while introducing stringent safeguards for data protection and content moderation, the company said.
TikTok, owned by China-based ByteDance, has faced intense scrutiny in Washington over privacy and national security concerns linked to its ties with China. Under a law passed during the presidency of Joe Biden, ByteDance was required to divest TikTok’s US business or face a ban in its largest market.
President Donald Trump welcomed the development and claimed credit for facilitating the deal, while also thanking Chinese President Xi Jinping for approving it.
“I am so happy to have helped in saving TikTok!” Trump wrote on Truth Social, adding that the platform would now be owned by “Great American Patriots and Investors.” He also expressed appreciation to President Xi for “working with us and, ultimately, approving the deal.”
Under the new structure, ByteDance will retain a 19.9 per cent stake, keeping its ownership below the 20pc threshold set by US law. Three major investors — Silver Lake, Oracle, and Abu Dhabi-based AI investment fund MGX — will each hold 15pc stakes. Other investors include the Dell Family Office, affiliates of Susquehanna International Group, and General Atlantic.
The joint venture will have full authority over trust, safety, and content moderation policies for US users, while TikTok’s global entities will continue managing international product integration and commercial operations such as advertising and e-commerce.
US user data will be stored on Oracle’s secure cloud infrastructure and will be subject to third-party cybersecurity audits in line with federal standards, TikTok said.
Jasmine Enberg, co-CEO of creator economy-focused media firm Scalable, said the deal would reassure users but noted that uncertainties remain. She added that TikTok would likely work to convince advertisers that business operations would continue without disruption.
The venture will be overseen by a seven-member, majority-American board that includes TikTok CEO Shou Chew and executives from investment firms. TikTok executive Adam Presser has been appointed chief executive officer of the new entity, while Will Farrell will serve as chief security officer.
The agreement largely confirms an outline previously shared with staff and follows months of political debate. While US lawmakers have long warned that TikTok could be used by China to access American data or influence public opinion, Trump repeatedly delayed enforcement of the law, citing the app’s popularity among young voters.
