TikTok Finalizes Deal for US Entity

After years of uncertainty over TikTok's future in the United States, a deal for the app's US business has been finalized. The agreement marks the end of a lengthy saga and months of slow progress as the terms were worked out.

The new US entity is called TikTok USDS Joint Venture. This structure ensures that the app will remain available in the US after years of being on the verge of a ban in the country.

The ownership of the new entity is carefully structured to address national security concerns. ByteDance, the Chinese parent company, has retained a 19.9 percent stake in the new business.

The rest of the company is controlled by a group of non-Chinese investors. Three major firms—Oracle, Silver Lake, and MGX, an Emirati-state owned investment firm—each hold a 15 percent stake.

Other investors, including Dell CEO Michael Dell, have smaller stakes in the new company. The terms of the deal were first leaked last month, after TikTok CEO Shou Chew reportedly told employees in a memo that TikTok and ByteDance had agreed to a group of investors.

The joint venture is designed to implement significant safeguards for American users. According to TikTok’s announcement, the entity will protect American users’ data with Oracle's secure US cloud environment.

Operational control will also shift to the US. The new entity will retrain TikTok’s algorithm on US users’ data and will be in charge of content moderation in the US.

The entity promises interoperability, ensuring that users will still get international content and that creators will retain access to their viewers. The safeguards provided by the Joint Venture will also cover:

• CapCut
• Lemon8
• A portfolio of other apps and websites in the US

The new entity will be overseen by a seven-member board of directors, most of whom are Americans. The board includes key figures from the investing consortium and TikTok itself.

Members of the board include:

• Shou Chew, the Chief Executive Officer of TikTok
• Egon Durban, Silver Lake co-CEO
• Kenneth Glueck, Oracle Executive Vice President
• David Scott, MGX Chief Strategy and Safety Officer

Adam Presser, who had previously been head of operations and trust and safety at TikTok, is the CEO of TikTok USDS Joint Venture.

The deal drew a notable reaction from former President Donald Trump, who had tried to ban the app during his first term in office. He praised the deal in a post on Truth Social.

"It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice," he wrote.

Trump added, "I only hope that long into the future I will be remembered by those who use and love TikTok." The statement marks a significant shift from his previous stance on the application.

Exactly what the new joint venture means for US users of TikTok remains somewhat unclear. Shortly after the deal was announced, TikTok introduced new terms of service for US users.

The new terms include provisions relating to use of the app by kids under 13, who are limited to the "Under 13 Experience." The terms also state that the "TikTok USDS Joint Venture does not endorse any content" in the app.

The company has not yet announced specific changes to the app’s algorithm or other core features, leaving users to watch for updates in the coming weeks.

The finalization of the TikTok USDS Joint Venture represents a major resolution to a high-stakes geopolitical and economic standoff. By placing the US operations under a distinct entity with American oversight, the deal aims to secure the app's longevity in a critical market.

While the immediate threat of a ban has been lifted, the transition to this new ownership structure will be closely watched by regulators, investors, and millions of users. The focus now shifts to how the new board will manage the platform's growth and security in the years to come.