US EditionTiktok Creates a Joint Venture in the United States to Meet Washington's Requirements
American and global investors hold 80.1% of the new U.S.-based venture securing TikTok’s 200 million users with data on Oracle’s cloud, addressing national security concerns.
- TikTok has completed a deal to create TikTok USDS Joint Venture LLC, with American and global investors owning 80.1% and ByteDance retaining 19.9%.
- The move follows years of legal and political pressure, including attempts to ban the app, a 2024 law requiring divestiture or ban, and TikTok briefly going dark before the January 2025 deadline.
- The deal requires Oracle-run U.S. cloud storage and cybersecurity controls, with U.S. user data stored locally and ByteDance licensing the content recommendation algorithm to TikTok USDS Joint Venture LLC.
- The agreement drew immediate public reaction and legal questions as aspects may face scrutiny under the 2024 law, while ByteDance's licensing role remains unclear.
- The three managing investors—Oracle, Silver Lake, and Abu Dhabi-based MGX—will each hold 15% stakes, joined by Dell Family Office and private firms, while Anupam Chander warned control shapes what Americans see through the content recommendation algorithm.
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After almost seven years, three U.S. presidents and the threat of almost total tenure, ByteDance won a decisive victory in its battle with Washington. The outcome came after TikTok announced an agreement this week to create a joint venture, a business partnership, in the United States with Oracle and other investors. The operation removed the risk of ban for national security reasons and ensured the continuity of the country's platform activitie…
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