Tiktok is no longer Chinese in America, here are the company’s new owners
TikTok has officially transitioned to US-led ownership, putting an end to years-long geopolitical standoff. The short-video giant has announced that it has finalised a complex divestment deal, essentially cutting its primary ties with its Chinese parent company, ByteDance, to avoid a permanent nationwide in America. The deal has created a new entity called TikTok USDS Joint Venture LLC, and it has facilitated by President Donald Trump.This means that by licensing the app’s algorithm and housing all operations within US borders, the Chinese company has satisfied national security requirements that have plagued it since 2020. Moreover, the newly-formed joint venture will be governed by a seven-member, majority-American board. Adam Presser, a former WarnerMedia executive, has been tapped as the CEO of the US operations.
How the TikTok’s US ownership will look like
The ownership of TikTok is now split among a consortium of high-profile global and American investors. These include Oracle, Silver Lake, MGX, ByteDance and a group of Strategic Investors.
- Oracle will have 15% share and the cloud giant, chaired by Trump ally Larry Ellison, will act as the “technological steward”, hosting all data and overseeing the retraining of the algorithm.
- Silver Lake also takes 15%, a major US tech investment firm with over $116 billion in assets.
- MGX (15%), an Emirati-based AI and technology investor.
- ByteDance, the former parent company, retains a minority, non-controlling stake with 19.9% of share.
- Strategic Investors will take 35.1%. This is a group that includes the family office of Michael Dell and Vastmere Strategic Investments, an affiliate of Susquehanna International Group.
How TikTok will change under US leadership
TikTok is not just changing hands but the core working of the app will be different. Under Oracle, the algorithm is being “retrained” exclusively on US user data, ensuring that the data used to predict user preferences never leaves American soil and is not accessible by foreign entities.This will means that the, localised new version of the algorithm is expected to feel different to the 200 million Americans on the platform, potentially leading to a “slower” or less accurate recommendation feed compared to the global version.
President Donald Trump says he ‘saved TikTok’
Trump celebrated the deal on social media, stating he was “happy to have helped in saving TikTok”.“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice. Along with other factors, it was responsible for my doing so well with the Youth Vote in the 2024 Presidential Election,” Trump posted on Truth Social. He had previously postponed enforcement of ban legislation to allow for negotiations.“I only hope that long into the future I will be remembered by those who use and love TikTok. Thank you to Vice President JD Vance, and all of the others within my Administration, who helped bring this Deal to a very dramatic, final, and beautiful conclusion. I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision. PRESIDENT DONALD J. TRUMP” he added.
