TikTok has established a majority American-owned joint venture to manage its US operations, aiming to avoid a potential ban over concerns regarding its Chinese ownership. The new entity, TikTok USDS Joint Venture LLC, will serve more than 200 million users and 7.5 million businesses while enforcing strict data protection and content moderation measures.
Under the arrangement, ByteDance retains a 19.9 percent stake, keeping ownership below the 20 percent threshold stipulated by US law. Three investors — Silver Lake, Oracle, and Abu Dhabi-based AI fund MGX — each hold 15 percent stakes, alongside other stakeholders including the Dell Family Office, affiliates of Susquehanna International Group, and General Atlantic.
The venture will be governed by a seven-member majority-American board, including TikTok CEO Shou Chew and executives from the investment firms. Adam Presser has been appointed CEO, while Will Farrell will serve as chief security officer. US user data will be stored in Oracle’s secure cloud environment, with third-party audits to ensure compliance with federal cybersecurity standards.
The joint venture addresses concerns arising from a law passed under the Biden administration requiring ByteDance to divest TikTok’s US operations or face a ban. Former US President Donald Trump welcomed the deal, crediting the arrangement to both US and Chinese cooperation, and describing the venture as owned by “Great American Patriots and Investors.”
Industry analysts have suggested that while users may feel reassured, questions remain regarding the implementation of policies and continuity of services. TikTok’s global entities will continue to manage international product integration, e-commerce, and advertising, while the US-based venture retains decision-making authority over trust and safety policies.
The move marks a significant step in resolving long-standing national security concerns and maintaining the app’s presence in the US market, which remains TikTok’s largest user base.
This story has been reported by PakTribune. All rights reserved.