TIKTOK LAUNCHES PARTNERSHIP TO COUNTER LOOMING US BAN
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By: Fasasi Hammad
TikTok announced on Thursday that it has established a majority American-owned joint venture to operate its US business, a move designed to prevent a potential ban over its Chinese ownership.
The video-sharing platform, a global digital entertainment powerhouse, has faced scrutiny in the US due to concerns over privacy and national security linked to its Chinese parent company, ByteDance.
The newly created TikTok USDS Joint Venture LLC will serve more than 200 million users and 7.5 million businesses while implementing strict safeguards for data protection and content moderation, the company said.
The move complies with a 2024 US law that requires Chinese-owned companies like ByteDance to either divest US operations or face restrictions. Under the new structure, ByteDance retains a 19.9 percent stake, keeping it below the 20 percent ownership threshold set by the law.
Three investors—Silver Lake, Oracle, and Abu Dhabi-based AI fund MGX—each hold 15 percent stakes, with Oracle executive chairman Larry Ellison, a longtime Trump ally, among the prominent backers. Other investors include the Dell Family Office, Susquehanna International Group affiliates, and General Atlantic.
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TikTok’s joint venture will retain authority over trust and safety policies and US content moderation, while global TikTok entities will manage international product integration, e-commerce, and advertising. US user data will be stored in Oracle’s secure cloud environment, with third-party cybersecurity audits ensuring compliance with federal standards.
Experts say the deal should reassure users, though questions remain over its implementation. Jasmine Enberg, co-CEO of media company Scalable, told AFP that advertisers will seek clarity to ensure business continuity.
The joint venture will be governed by a seven-member, majority-American board, including TikTok CEO Shou Chew and executives from the investment firms. Adam Presser will serve as CEO, with Will Farrell appointed chief security officer.
The arrangement follows longstanding US concerns that China could use TikTok to access Americans’ data or influence public opinion. President Donald Trump, who credited the app with boosting his appeal among younger voters, welcomed the deal and thanked Chinese President Xi Jinping for approving it.
According to earlier reports, the US entity is expected to be valued at around $14 billion, with final pricing determined by the investors. The deal confirms a framework previously shared with TikTok staff by Chew.
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