TikTok has finalized a deal to create a majority American-owned joint
TikTok has finalized a deal to create a majority American-owned joint venture designed to secure U.S. user data and prevent a nationwide ban of the popular short-video app, its Chinese owner ByteDance said on Thursday.
The agreement marks a major milestone for TikTok, which has been locked in political and legal battles in Washington since 2020 over concerns that U.S. user data could be accessed by the Chinese government. TikTok is used by more than 200 million Americans.
Under the deal, a newly formed entity, TikTok USDS Joint Venture LLC, will be responsible for securing U.S. user data, apps and algorithms through enhanced data privacy and cybersecurity measures. ByteDance said the venture would be majority owned by American and global investors, though it disclosed limited details about the broader divestiture.
Ownership structure
American and global investors will collectively hold 80.1% of the joint venture, while ByteDance will retain a 19.9% stake. Three managing investors — Oracle, private equity firm Silver Lake and Abu Dhabi-based investment firm MGX — will each own 15%.
Additional investors include the Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners,
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