Prime Highlights:
- A new majority American-owned joint venture will take over TikTok’s US operations, addressing national security concerns.
- Over 200 million American users can continue using TikTok safely, with the US team overseeing the app’s algorithm and content.
Key Facts:
- The joint venture includes US companies Oracle and Silver Lake, with ByteDance keeping 19.9% ownership.
- The US team will manage user data, content moderation, and retrain the TikTok algorithm under American oversight.
Background:
TikTok’s future in the United States has been secured as the joint venture acquiring its US assets is officially established. The announcement comes just a day before the deadline set by President Donald Trump for the app’s US operations to be separated from its Chinese parent company, ByteDance.
The new joint venture, mostly owned by Americans, will protect US user data, monitor the app’s algorithm, manage content, and ensure software security. The team will be led by CEO Adam Presser, who previously worked on keeping TikTok user data safe, and Chief Security Officer Will Farrell, who managed privacy and security.
The board will be composed of TikTok US CEO Shou Chew, Oracle Executive Kenneth Glueck, and representatives from investment firms Silver Lake, Susquehanna International Group, and Emirati-backed MGX, among others.
President Trump expressed gratitude to Chinese President Xi Jinping for approving the deal, describing the outcome as a “very dramatic, final, and beautiful conclusion.”
The agreement transfers control of TikTok’s US user data and operations to the joint venture, with Oracle overseeing storage of American data. The new entity will retrain TikTok’s algorithm on US user data and manage content moderation for the US platform. While ByteDance will continue managing e-commerce, advertising, and marketing globally, the user experience in the US is expected to remain largely unchanged.
The move comes after years of discussions, starting with Trump’s initial threats to ban the app and reinforced by a law signed during President Biden’s term requiring the US version to be spun off. The deal removes worries about foreign influence and lets over 200 million Americans keep using TikTok safely.
The US team will oversee the TikTok algorithm to keep the app running smoothly and fairly.
