Tiktok Bets on a Joint Venture to Survive in The US

By Staff, Agencies

TikTok said on Thursday it has created a joint venture with majority US ownership to run its American operations, a move aimed at averting a ban tied to concerns over its Chinese ownership.

Despite global popularity, TikTok’s China ties have raised security concerns as its new US joint venture pledges strict data and content safeguards for over 200 million users.

The new structure responds to a law passed under US President Donald Trump's predecessor Joe Biden that forced Chinese-owned ByteDance to sell TikTok's US operations or face a ban in its biggest market.

Trump welcomed the deal and claimed credit for it, saying he was “so happy to have helped in saving TikTok,” adding that it would be owned by “Great American Patriots and Investors,” and thanking Chinese President Xi Jinping for approving the agreement.

ByteDance keeps a 19.9% stake in the joint venture, while Silver Lake, Oracle, and Abu Dhabi’s MGX each hold 15%, with other investors including Dell Family Office, Susquehanna affiliates, and General Atlantic.

The US joint venture will control trust, safety, and content moderation for American users, while TikTok’s global entities handle international operations. US user data will be stored in Oracle’s secure cloud and audited to federal cybersecurity standards.

Jasmine Enberg, co-CEO of Scalable, said TikTok users would be relieved by the deal but that there are “still big questions about how this will all play out,” adding that advertisers will want assurance their strategies won’t be disrupted.

The US joint venture, led by CEO Adam Presser and a majority-American board including TikTok’s Shou Chew, follows a 2024 law limiting China’s influence, though Trump had delayed enforcement.

In September, JD Vance estimated the US TikTok venture at $14 billion, with pricing set by investors. Trump confirmed the deal met legal requirements, highlighting Oracle’s Larry Ellison, a longtime ally, as a key participant.