- TikTok has finalized a deal to create TikTok USDS Joint Venture LLC, a majority American-owned entity, securing its U.S. operations and avoiding a potential ban.
- The move prevents the app from being banned under a 2024 U.S. law requiring TikTok’s Chinese owner, ByteDance, to divest its U.S. assets by January 2025.
- The venture will be 80.1% owned by American and global investors, with ByteDance retaining a 19.9% stake. Managing investors, including Oracle, Silver Lake, and Emirati firm MGX, each hold 15%.
- Leadership includes Adam Presser as CEO, Will Farrell as Chief Security Officer, and TikTok CEO Shou Chew on the board.
- U.S. user data will be stored locally in Oracle’s cloud. TikTok’s content recommendation algorithm will be retrained, tested, and secured using U.S. user data. ByteDance will license the algorithm to the U.S. venture but will retain control of revenue-generating operations (advertising, e-commerce).
TikTok Establishes New US Joint Venture to Avoid Ban
