The new entity, TikTok USDS Joint Venture LLC, will serve over 200 million users and 7.5 million businesses while enforcing strict data protections. This restructuring addresses Biden-era legislation requiring parent company ByteDance to divest TikTok’s US operations or face a shutdown.
Under the agreement, ByteDance retains a 19.9% stake, staying below the 20% legal cap. Silver Lake, Oracle, and Abu Dhabi’s MGX will each hold 15%, with additional investment from the Dell Family Office, Susquehanna International Group, and General Atlantic, according to AFP.
Former President Donald Trump, who shifted from trying to ban the app to opposing its prohibition, welcomed the deal. “I am so happy to have helped in saving TikTok,” he posted on Truth Social, noting it will be owned by “Great American Patriots.”
Read more: TikTok signs joint venture deal to end US ban threat
He also thanked Chinese President Xi Jinping for approving the arrangement, which notably involves Trump ally and Oracle executive chairman Larry Ellison.
The joint venture will control trust, safety, and content moderation for US users. Meanwhile, TikTok’s global entities will continue to manage international product integration and commercial activities, such as e-commerce and advertising.
Governed by a seven-member, majority-American board, the new entity will be led by CEO Adam Presser and Chief Security Officer Will Farrell.
