TikTok established a majority American-owned joint venture to operate its US business, averting a potential ban related to its Chinese ownership.
The video-sharing app, a global digital entertainment leader, faced scrutiny due to its popularity and connections to China, raising privacy and national security concerns.
TikTok USDS Joint Venture LLC will serve over 200 million users and 7.5 million businesses, implementing robust data protection and content moderation measures, the company stated.
This new structure addresses a law passed under President Joe Biden, which compelled ByteDance to divest TikTok’s US operations or risk a ban in its largest market.
Former President Donald Trump praised the deal and claimed credit for it, also thanking Chinese president Xi Jinping for his approval.
“I am so happy to have helped in saving TikTok!” Trump posted on Truth Social Thursday.
“It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an notable Voice.”
“I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal,” he added.
Cybersecurity audit
ByteDance maintains a 19.9 percent stake in the joint venture, remaining below the 20 percent ownership limit set by the law.
Silver Lake,Oracle,and Abu Dhabi-based AI investment fund MGX each hold 15 percent stakes. Oracle’s executive chairman,
