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TikTok Spins Off U.S. Unit Into Majority‑American Venture, Averting Ban

The restructuring satisfies a 2024 law by moving U.S. data to Oracle and licensing the recommendation algorithm under U.S. oversight.

Overview

  • The joint venture, TikTok USDS, was formally created and closed Jan. 22–23, shifting control of the U.S. business to a majority‑American structure and heading off app‑store removal.
  • Oracle, Silver Lake and Abu Dhabi’s MGX each hold about 15% while ByteDance retains 19.9%, with the remaining shares sitting with existing investors including Michael Dell and Xavier Niel.
  • Oracle will host U.S. user data, monitor national‑security standards and oversee algorithm adjustments, while TikTok’s recommendation engine is licensed to the U.S. entity and retrained on U.S. data.
  • Governance includes a seven‑member board with a U.S. majority; at least four directors require U.S. national‑security clearance, Adam Presser takes the helm, and TikTok CEO Shou Chew keeps a board seat.
  • President Trump welcomed the deal and praised Xi Jinping’s cooperation, as critics question residual ByteDance influence and warn that Oracle founder Larry Ellison’s role could concentrate domestic media power.