TikTok US Joint Venture Agreement

Chinese company ByteDance's TikTok has officially agreed to establish a new US joint venture to avoid a ban in the United States. This new project, named TikTok USDS Joint Venture LLC, will operate predominantly under American ownership. According to this deal, American user data, apps, and algorithms of TikTok will be secured within a new structure controlled by American parties. Oracle, Silver Lake, and MGX from Abu Dhabi will each hold a 15% stake in this joint venture, with American and international investors collectively owning 80.1%. ByteDance's ownership stake is capped at 19.9%.

This move is seen as a solution to the US national security concerns regarding TikTok that have existed since 2020. In 2024, US law mandated that ByteDance either sell TikTok's American operations or face a ban. This law was also approved by the Senate. Former US President Donald Trump expressed satisfaction with this deal, stating that TikTok is now controlled by "Great American Patriots and Investors," and mentioned that Chinese President Xi Jinping's cooperation was secured for the agreement's success. The operation of this new joint venture aims to ensure the data security of over 200 million American TikTok users and allow TikTok to continue operating in the US. However, detailed information about the exact business relationship between ByteDance and the new venture has not yet been fully disclosed.