The social media platform TikTok has announced the completion of a deal and the establishment of a new American joint venture, allowing it to continue operations in the US after years of political and legal confrontation. The joint venture has already been officially established and introduced its leadership team ahead of the deadline set by President Donald Trump.
This is reported by Finway
What Exactly Happened
The company ByteDance, the Chinese owner of TikTok, has completed the deal to transfer the platform’s assets in the US to a new entity called TikTok USDS Joint Venture LLC with predominantly American ownership. This new legal structure allows the app to avoid a potential ban in the United States, which had been a threat due to concerns over data security and foreign influence.
The majority stake in the joint venture will be held by American and international investors, including the technology company Oracle, the private equity firm Silver Lake, and the MGX fund from the UAE. ByteDance retains a stake of less than 20%.
The CEO of the new company has been appointed as Adam Presser, who previously led TikTok’s efforts to protect the data of American users. The team also includes top executives from security and other representatives from the technology and investment sectors.
Data Security, Algorithms, and Moderation
The new structure includes comprehensive measures to protect US national security:
• American user data will be stored under the control of Oracle,
• the recommendation algorithm will be accessible to the new venture and adapted for the American market,
• independent content moderation and security audits are also planned.
Reactions from Politicians
Former US President Donald Trump welcomed the deal, also thanking the President of China for agreeing to the arrangement, and called this step important for keeping TikTok in the US.
What This Means for Users
TikTok will continue to operate for over 200 million American users who actively use the platform for entertainment, news, and business. According to the company, the user interface visible to users will not change significantly, but data security and algorithm control will be strengthened in accordance with American standards.
Context of the Issue
This marks the end of a long saga that has lasted for years, related to concerns about the Chinese government’s access to Americans’ data through TikTok. A law passed in 2024 required either the sale of American assets or a ban on the app in the US, and the creation of an American joint venture has become a compromise solution.
TikTok has managed to retain its access to the American market by establishing a joint venture with predominantly American ownership and new data security guarantees. This allows the platform to continue operating in the US despite previous threats of a complete ban.