TikTok has announced the formation of a majority American-owned joint venture to manage its operations in the United States, a move designed to resolve national security concerns and prevent a government-imposed ban.
The new entity, named TikTok USDS Joint Venture LLC, will serve over 200 million users and 7.5 million businesses in the US. The company stated that the new structure will implement stringent measures for data security and content moderation.
This decision comes in response to a US law, passed under the previous administration of Joe Biden, which mandated that TikTok’s Chinese parent company, ByteDance, must divest its US assets or face being banned from its largest market.
US President Donald Trump expressed his support for the deal, stating on his Truth Social platform, “I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors.” He also thanked Chinese President Xi Jinping for his role in approving the agreement.
New Ownership and Security Structure
Under the terms of the joint venture, ByteDance will hold a 19.9% stake, keeping its ownership below the 20% limit set by the law. Key American and international investors will hold the majority share. Investment firms Silver Lake and Oracle, along with the Abu Dhabi-based AI fund MGX, each possess a 15% stake.
To address data security concerns, all US user data will be stored within Oracle’s cloud infrastructure. TikTok confirmed that this data environment will be subject to audits by independent cybersecurity experts and will comply with US federal standards.
The joint venture will be overseen by a seven-member board with an American majority. Adam Presser has been named CEO of the new company, with Will Farrell appointed as its chief security officer.
Jasmine Enberg, co-CEO of the media company Scalable, commented on the development, noting that while users may be relieved, “there are still big questions about how this will all play out.” She added that advertisers would be seeking assurance that their strategies on the platform will not be disrupted.
