TikTok Forms Majority American-Owned Joint Venture
President Donald Trump has signed an executive order in the Oval Office regarding TikTok, which has announced a significant deal to establish a majority American-owned joint venture. This move is part of a strategy to prevent a potential ban on the app in the United States.
This agreement marks an important achievement for TikTok, a response to ongoing legal and political challenges that began in 2020 when concerns were raised regarding the Chinese-owned platform’s security implications.
The new joint venture, named TikTok US Data Security (USDS) organization, will comply with U.S. regulatory requirements set by Trump’s executive order from September 25, allowing more than 200 million U.S. users and 7.5 million businesses to keep using the app.
In a post on Truth Social, Trump expressed his delight: “I’m so happy to help save TikTok! TikTok is now owned by the largest group of great American patriots and investors in the world and will be an important voice.”
TikTok’s New US Joint Venture Set for Completion by 2026
According to the company, TikTok USDS Joint Venture LLC was created today, and it will enable American users and businesses to continue to thrive within TikTok’s vibrant community.
The venture also mentions that TikTok’s associated apps, like CapCut and Lemon8, will come under the joint venture’s U.S. management.
As per the terms, the U.S. entity will own 80.1% of the joint venture, with the existing parent company, ByteDance, holding onto 19.9%. Three firms will manage investments: Oracle, Silver Lake, and Abu Dhabi-based MGX, each obtaining a 15% share.
Trump Allows TikTok Deal to Move Forward
The new venture will focus on building a U.S. cloud infrastructure via Oracle, emphasizing strong data privacy and cybersecurity to safeguard user data, applications, and algorithms.
Furthermore, the company stated that content recommendation algorithms will be housed within Oracle’s U.S. cloud framework.
Governed by a seven-member board, the majority are American, representing significant investment and technology firms.
Adam Presser has been appointed as the CEO of the new joint venture. Notable board members include TikTok CEO Shou Chew, Oracle’s Kenneth Glueck, Silver Lake’s Egon Durban, and MGX’s David Scott.
The joint venture aims to uphold a “global TikTok experience” for U.S. users, permitting them to connect with creators worldwide while maintaining control over aspects like e-commerce, advertising, and marketing.
