WASHINGTON: TikTok announced Thursday it has established a majority American-owned joint venture to operate its US business, allowing the company to avoid a ban over its Chinese ownership.
The TikTok USDS Joint Venture LLC will serve more than 200 million users and 7.5 million businesses while implementing strict safeguards for data protection, algorithm security and content moderation, the company said.
The new structure responds to a law passed under President Donald Trump’s predecessor, Joe Biden, that forced Chinese-owned ByteDance to sell TikTok’s US operations or face a ban in its biggest market.
Trump welcomed and claimed credit for the deal, but also thanked Chinese President Xi Jinping for approving it.
“I am so happy to have helped in saving TikTok!” Trump said in a post on Truth Social late Thursday. “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.”
“I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal,” he added.
ByteDance retains a 19.9 per cent stake in the joint venture — keeping its ownership below the 20 per cent threshold stipulated by the law.
Three investors — Silver Lake, Oracle and Abu Dhabi-based AI investment fund MGX — each hold 15 per cent stakes. Oracle’s executive chairman Larry Ellison is a longtime Trump ally.
Other investors include Dell Family Office, affiliates of Susquehanna International Group and General Atlantic, and several other investment firms.
The joint venture will retain decision-making authority over trust and safety policies and content moderation for US users, while TikTok’s global entities will manage international product integration and commercial activities including e-commerce and advertising.
Under the arrangement, US user data will be stored in Oracle’s secure cloud environment, with cybersecurity audited by third-party experts and adhering to federal standards, TikTok said.
The joint venture will be governed by a seven-member, majority-American board including TikTok CEO Shou Chew and executives from major investment firms.
TikTok executive Adam Presser was appointed CEO of the new entity, with Will Farrell serving as chief security officer. – AFP
