TikTok to avoid US ban: Majority American-led joint venture formed with Chinese owner
Social media platform TikTok on Friday announced that it has finalised the creation of a majority American-owned joint venture to run its US operations, a move designed to avert a long-threatened ban linked to its Chinese ownership. The new entity, TikTok USDS Joint Venture LLC, will serve more than 200 million American users and around 7.5 million businesses, while operating with enhanced safeguards around data protection, cybersecurity, content moderation and the app’s recommendation algorithm.Under the agreement, US and international investors will collectively hold 80.1 per cent of the joint venture, with TikTok’s Chinese parent company ByteDance retaining a 19.9 per cent stake. Major investors include Oracle, private equity firm Silver Lake and Abu Dhabi-based investment group MGX, each of which holds a 15 per cent share. Other stakes are held by firms including the Dell Family Office, Alpha Wave Partners, Revolution and NJJ Capital.The deal follows years of political and regulatory pressure in Washington, beginning with efforts by President Donald Trump in 2020 to block the app on national security grounds. More recently, legislation passed under former president Joe Biden required ByteDance to divest its US business or face a ban in TikTok’s largest market.TikTok said the joint venture will operate as an independent company overseen by a seven-member board with a majority of American directors. Adam Presser has been appointed chief executive of the US business, with responsibility for securing US user data while driving growth across TikTok and related apps.
