TikTok forms US joint venture to avert ban over Chinese ownership

Video and photo-sharing platform TikTok has created a new joint venture, TikTok USDS Joint Venture LLC, with majority American ownership to continue operating its business in the United States and avoid a potential ban linked to its Chinese roots.

The new entity is expected to serve more than 200 million users and 7.5 million businesses across the country, with enhanced safeguards for data protection, algorithm security, and content moderation.

Former US President Donald Trump welcomed the agreement and claimed credit for facilitating the deal, while also expressing appreciation to Chinese President Xi Jinping for approving the arrangement.

“I am so happy to have helped in saving TikTok!” Trump said in a post on Truth Social late Thursday.

“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.

“I would also like to thank President Xi of China for working with us and, ultimately, approving the Deal,” he added.

The joint venture is owned by a group of American investors, including Silver Lake, Oracle, and Abu Dhabi-based AI investment fund MGX, each holding 15% stakes, while ByteDance retains a 19.9% stake.

Oracle will store US user data in its secure cloud environment, with cybersecurity audited by third-party experts.