TikTok has successfully navigated around a potential ban in its largest market through the establishment of a majority American-owned corporate entity. The newly formed TikTok USDS Joint Venture LLC will maintain operations for over 200 million American users and 7.5 million businesses while implementing enhanced data protection protocols and content moderation systems.
This strategic restructuring directly addresses national security concerns raised by U.S. policymakers regarding Chinese ownership of the popular video platform. The move complies with legislation enacted during the Biden administration that mandated ByteDance either divest TikTok’s U.S. operations or face prohibition from American digital marketplaces.
Under the finalized arrangement, Chinese parent company ByteDance will maintain a 19.9% stake in the venture—deliberately kept below the 20% threshold specified in the regulatory framework. Major American investment firms including Silver Lake, Oracle, and MGX (an Abu Dhabi-based AI investment fund) each secured 15% ownership positions. Additional stakeholders comprise Dell Family Office, Susquehanna International Group affiliates, General Atlantic, and several other financial institutions.
The governance structure will feature a seven-member board with American majority representation, including TikTok’s global CEO Shou Chew and executives from leading investment firms. Adam Presser has been appointed CEO of the new entity, with Will Farrell assuming the chief security officer position.
Operational responsibilities will see the joint venture maintaining authority over trust and safety policies and content moderation for U.S. users, while TikTok’s global entities will continue managing international product integration and commercial activities including e-commerce and advertising. All American user data will be housed within Oracle’s secure cloud environment, subject to third-party cybersecurity audits and compliance with federal standards.
Former President Donald Trump publicly celebrated the resolution, claiming personal credit for preserving TikTok’s American operations while acknowledging Chinese President Xi Jinping’s cooperation in approving the arrangement. Oracle’s executive chairman Larry Ellison, a longstanding Trump associate, emerges as a significant figure in the investment consortium, recently expanding his influence through major AI partnerships and media industry acquisitions.