TikTok on Thursday announced the creation of a majority American-owned joint venture to operate its United States business, a move that allows the popular video platform to avoid a looming ban tied to concerns over its Chinese ownership.
The new entity, TikTok USDS Joint Venture LLC, will serve more than 200 million American users and about 7.5 million businesses. According to the company, the structure includes enhanced safeguards around data protection, algorithm security, and content moderation.
The arrangement follows a law enacted under former President Joe Biden that required ByteDance, TikTok’s Chinese parent company, to divest its US operations or face a nationwide ban. ByteDance will retain a 19.9 percent stake in the new venture, remaining below the 20 percent ownership threshold mandated by the law.
Former President Donald Trump welcomed the deal and claimed credit for its completion. In a post on Truth Social, Trump described the agreement as a win for American investors and thanked Chinese President Xi Jinping for approving the transaction.
Three major investors, Silver Lake, Oracle, and Abu Dhabi-based AI investment fund MGX, each hold 15 percent stakes in the venture. Oracle executive chairman Larry Ellison, a longtime Trump ally, is among the most prominent figures involved. Additional investors include the Dell Family Office, affiliates of Susquehanna International Group and General Atlantic, along with other investment firms.
Under the new structure, the joint venture will have authority over trust and safety policies and content moderation for US users. TikTok’s global entities will continue to oversee international product integration and commercial operations, including advertising and e-commerce.
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TikTok said US user data will be stored within Oracle’s secure cloud infrastructure, with cybersecurity practices audited by independent third-party experts and aligned with federal standards.
Governance of the company will be handled by a seven-member board that is majority American, including TikTok CEO Shou Chew and representatives of major investors. TikTok executive Adam Presser has been appointed chief executive officer of the joint venture, while Will Farrell will serve as chief security officer.
The law targeting TikTok emerged amid longstanding concerns among US policymakers that China could exploit the platform to access American user data or influence public discourse through its algorithm. Despite those concerns, Trump repeatedly delayed enforcement, citing the app’s popularity with younger voters.
In September, Vice President JD Vance estimated the US entity’s valuation at roughly $14 billion, though final pricing was left to investors. The deal largely confirms an internal outline previously shared with TikTok staff and publicly referenced by Trump late last year.