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TikTok Forms U.S.-Majority Joint Venture to Keep App Operating in America

The U.S.-majority structure answers a 2024 law requiring ByteDance to cede U.S. control.

Overview

  • The new entity, TikTok USDS Joint Venture LLC, places 80.1% ownership with U.S. and international investors, leaving ByteDance with a 19.9% stake.
  • Oracle, Silver Lake and MGX are reported to hold roughly 15% each, and TikTok says U.S. data and a U.S.-specific recommendation algorithm will be secured in Oracle’s U.S. cloud.
  • Governance will rest with a seven‑member board that is mostly American and includes TikTok CEO Shou Chew, with the venture tasked to secure U.S. user data, applications and algorithms.
  • U.S. users did not need to download a new app, though many were prompted to accept updated terms covering location and data use.
  • TikTok will keep U.S. advertising, e‑commerce and communications under a separate ByteDance‑controlled unit, while a White House official says both Washington and Beijing approved the deal and President Trump praised it as critics and lawmakers question security and promise oversight.