TikTok ends ban saga with announcement on majority US-owned joint venture
New York, New York - TikTok officially established a majority American-owned joint venture to operate its US business, allowing the platform to avoid a ban over its Chinese ownership.
The TikTok USDS Joint Venture LLC will serve more than 200 million users and 7.5 million businesses while implementing strict safeguards for data protection, algorithm security and content moderation, the company said.
The new structure responds to a law passed under President Donald Trump's predecessor, Joe Biden, that forced Chinese-owned ByteDance to sell TikTok's US operations or face a ban in its biggest market.
Trump welcomed and claimed credit for the deal, but also thanked Chinese President Xi Jinping for approving it.
ByteDance retains a 19.9% stake in the joint venture – keeping its ownership below the 20% threshold stipulated by the law.
Three investors – Silver Lake, Oracle, and Abu Dhabi-based AI investment fund MGX – each hold 15% stakes. Oracle's executive chairman, billionaire Larry Ellison, is a longtime Trump ally.
Other investors include Dell Family Office, affiliates of Susquehanna International Group and General Atlantic, and several other investment firms.
Trump ally Larry Ellison's company heavily involved
The new joint venture will retain decision-making authority over trust and safety policies and content moderation for US users, while TikTok's global entities will manage international product integration and commercial activities including e-commerce and advertising.
Under the arrangement, US user data will be stored in Oracle's secure cloud environment, with cybersecurity audited by third-party experts and adhering to federal standards, TikTok said.
The joint venture will be governed by a seven-member, majority-American board including TikTok CEO Shou Chew and executives from major investment firms.
TikTok executive Adam Presser was appointed CEO of the new entity, with Will Farrell serving as chief security officer.
The deal largely confirms an outline announced to staff by Chew last month.
In September, one-time venture capitalist and Vice President JD Vance said the US entity would be valued at about $14 billion but it would ultimately be up to investors to determine pricing.
That month, Trump said a new venture had been agreed with China and would meet the law's requirements.
Cover photo: Collage: REUTERS