TikTok Establishes U.S. Joint Venture With a Majority American Board
In Focus
- Former TikTok operations head becomes CEO on the Joint Venture
- The joint venture will be responsible for protecting TikTok user data in the U.S.
- American investors control a 50% stake in the company
Chinese company ByteDance has closed a deal to set up a TikTok U.S. joint venture. According to Yahoo Finance, the move enables TikTok to avoid a U.S. ban and secures its future in the country.
“TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025,” TikTok said in a statement posted on its website.
New Joint Venture Ends Regulatory Dispute
The TikTok sale brings to an end a 5-year long regulatory and geopolitical dispute. The U.S. government had threatened to ban TikTok over national security concerns after Congress passed the divest or ban law back in 2024.
The ban was to take effect in January 2025. However, the U.S. President Donald Trump delayed the ban multiple times to allow for the sale.
A significant milestone in the TikTok sale was achieved last month after ByteDance signed binding agreements to cede control of TikTok’s U.S. operations and establish the Joint Venture.
The move ended attempts to force the Chinese company to divest operations of the video streaming platform in the U.S. TikTok’s deal to operate in the U.S. enables over 200 million Americans, along with 7.5 million businesses to continue being part of a vibrant global community.
Oracle, Silver Lake Among Managing Investors
TikTok USDS Joint Venture will have three managing investors. These are Oracle Corp, Abu Dhabi-based investment firm MGX, and private equity firm Silver Lake Management LLC. The new entity is backed by other investors, including Michael Dell’s Vastmere Strategic Investments.
ByteDance announced that Adam Presser, who previously headed TikTok’s operations and safety, had been appointed CEO of TikTok USDS Joint Venture. The new entity will be managed as a separate entity from the global TikTok business, which is headed by CEO Shou Chew. However, Chew will serve as a director in the newly established venture.
“TikTok USDS Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users,” the company statement added.
TikTok USDS to Protect User Data
The new entity will be responsible for content moderation and protecting U.S. TikTok user’s data. Software giant Oracle, which has been TikTok’s cloud computing partner, will run and secure the algorithm of the U.S. version of TikTok.
TikTok USDS will be run by a seven-member board of directors, the majority being Americans. The board members are:
- Shou Chew, CEO of TikTok
- Timothy Dattels of TPG Global
- Mark Dooley of Susquehanna International Group
- Egon Durban, CoCEO of Silver Lake
- Raul Fernandez, CEO of DXC Technology
- Kenneth Glueck of Oracle
- David Scott of MGX
In the latest deal, ByteDance retains a 19.9% stake in the TikTok USDS Joint Venture. New investors, including Oracle, Silver Lake and MGX hold a 50% stake, while current ByteDance investors have a 30.1% stake in the Joint Venture.
